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Hydrogen & Fuel Cells Technical Advisory Committee Hydrogen Enabling Renewables Working Group Summary Report October 2013 1

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Page 1: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Hydrogen amp Fuel Cells Technical Advisory Committee

Hydrogen Enabling Renewables

Working Group

Summary Report

October 2013

1

Introduction

In late 2010 the Hydrogen amp Fuel Cell Technical Advisory Committee chartered a

working group to examine the various ways in which hydrogen might serve as an enabler

for high penetrations (greater than 50 nationally or regionally on an energy basis) of

variable renewable energy in the United States The Hydrogen Enabling Renewables

Working Group (HERWG) began work in earnest in early 2011

Comprised of both HTAC members and other representatives with significant hydrogen

and fuel cell expertise the Working Group benefited from the extensive knowledge

experience and insights of the following members

bull Frank Novachek (HTAC Member ndash Working Group Lead)

bull Peter Bond (HTAC Member)

bull Charles Freese (HTAC Member)

bull Rob Friedland (Industry)

bull Monterey Gardiner (DOE)

bull Fred Joseck (DOE)

bull Maurice Kaya (HTAC Member)

bull Harol Koyama (HTAC Member)

bull Jason Marcinkoski (DOE)

bull Todd Ramsden (NREL)

bull Bob Shaw (HTAC Member)

bull Darlene Steward (NREL)

bull George Sverdrup (NREL)

bull Sandy Thomas (Consultant)

bull Levi Thompson (HTAC Member)

bull Daryl Wilson (Industry)

The first task was describing the future scenario where the US combined electric grid and

transportation sector were powered with more than 50 renewables nationally or

regionally on an energy basis After significant discussion the Working Group

envisioned an environment characterized by the following attributes

bull Large amounts of variable off-peak renewable energy result in significant

spillage or curtailments when it exceeds energy demand

bull Reductions seen in the cost of renewable energy versus traditional energy sources

due to high volume production and technological advances

bull Baseload power plants with lower turndown capabilities and better load following

performance

bull Large wind resources not near large load centers requiring significant

transmission investments

bull Environmental concerns and transmission constraints limiting large scale central

solar facilities thereby influencing more distributed scale solar using existing

urban and suburban open spaces including paved lots (This type of resource will

likely be interconnected to distribution grids)

2

bull Distributed and utility-scale generators such as stationary fuel cells possibly

becoming more economical and more efficient (both from energy conversion and

CO2 perspectives) than traditional utility scale thermal resources

Given this potential future the Working Group identified several potential applications

for hydrogen and fuel cells to enable high penetrations of renewables including

bull As a means for storing excess renewable energy and returning that energy to the

electric grid when needed

bull As a supplement to natural gas system using excess renewable energy for

hydrogen production to mix with natural gas

bull As an alternative energy transmission and distribution mechanism and

bull To improve renewable resource utilization through the production of vehicle fuel

using excess renewable energy

Because the elements of energy storage represent the fundamental building blocks for the

other applications the Working Group focused its attention in that area

Energy Storage for Wind Integration

To better understand the economic drivers for hydrogen energy storage systems the

Working Group developed two basic models for evaluating hydrogen energy storage

against other competing storage technologies The first was a ldquoSimple Modelrdquo based on

the basis scheme shown below for utility scale wind energy storage

A whitepaper discussing the results of the analyses conducted using this model was

developed by Dr CE ldquoSandyrdquo Thomas and is included as Appendix 1 Energy Storage

for High Penetration Wind

The conclusions from the ldquoSimple Modelrdquo analyses found that hydrogen energy storage

is competitive with all current energy storage technologies when the economic conditions

make the capture of large amounts (on the order of weeks) of otherwise curtailed wind

energy more valuable than curtailing it and letting the generation potential go to waste in

order to maintain electric system stability and control All in the Working Group agreed

that such economic conditions could exist in the ldquohigh wind penetrationrdquo scenario

3

contemplated (ie greater than 50 nationally or regionally on an energy basis)

especially if coupled with higher renewable portfolio standards andor other policies

favoring renewable energy

Community Energy Storage Systems for Load Leveling Solar Photovoltaics

and Vehicle Refueling

The second was a model for evaluating community scale solar energy storage based on

the following scheme

A whitepaper discussing the results of the analyses conducted using this model was

developed by Darlene Steward from the National Renewable Energy Laboratory and is

included as Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy

Systems with Photovoltaics for Load Leveling and Vehicle Refueling

The ldquoCommunity Energy Modelrdquo analyses produced the following conclusions

bull There is a surprisingly good match between building load PV system peak

capacity and the number of vehicles that would be served in that size of

community

bull Although results do not show a clear advantage for hydrogen energy storage load

leveling or vehicle refueling the economics could become competitive with

larger systems (on the order of 15000 kW peak capacity PV systems)

bull The additional equipment for the hydrogen system hurts the economics for

smaller systems

bull The flexibility of the hydrogen system configuration improves the economics for

larger systems

bull For both hydrogen and electric vehicles diverting more electricity from the PV

system improves the economics but the effect is more pronounced for the

hydrogen system

4

Other Energy Storage Approaches

Near the end of the of the Working Grouprsquos efforts new information was being

discussed about approaches to storing renewable energy as hydrogen in the nationrsquos

existing natural gas system In Europe there are now more than twenty so called

ldquopower-to-gasrdquo hydrogen energy storage demonstration projects which have been

launched in the last 18 months ndash more than any other technology platform for utility

scale storage Though the Working Group did not delve into this hydrogen storage

pathway in significant detail the concept is intriguing to several of its members and

could possibly have applications for the US

Overall Conclusions amp Recommendations

As the nationrsquos renewable generating capacity (solar and wind) expands to deliver a

significant fraction of the total electric energy generated (somewhere greater than 30

percent on an energy basis nationally) both short and long term energy storage will likely

be very desirable if not required The Working Group considered a scenario where the

penetration of renewables was 50 on an energy basis Under this scenario the Working

Group assumed that environmental policies would likely be in place influencing grid

economics to maximize the use of renewable energy such that using curtailment as a

means to maintain grid stability would be much a much more costly control measure than

it is today If that is the case there would conceivably be economic benefits to storing

weeks or more of otherwise curtailed renewable energy during peak output periods in

high penetration renewable regions for use during periods when the stored renewable

energy can be delivered in order to reduce the need for greenhouse gas emitting

generation

Hydrogen technology as shown by ldquoSimple Modelrdquo study (Appendix 1) has the most

economical and greatest storage capacity for absorbing and redeploying energy generated

from renewable generation when compared to batteries compressed air energy storage

and pumped hydro storage solutions when the storage requirement is in terms of weeks

or longer Because of this hydrogen energy storage could be an essential contributor

to enabling renewables at the high penetrations contemplated by the Working Group

Although results do not show a clear advantage for hydrogen energy storage load leveling

or vehicle refueling at smaller scales studied in this effort the economics could become

competitive with larger systems especially for larger systems (on the order of 15000 kW

peak capacity PV systems) Such a system would also be capable of providing both fully

renewable fuel and electric grid stabilization benefits

Continuing assessment of the economic viability of hydrogen production as a renewable

energy storage pathway should be a high priority for DOE and the renewableelectric

industry working in partnership

5

Recommendations

Energy Storage for Wind Integration

bull Determine if there are national policies being considered that would significantly

increase renewable penetrations as a means to reduce greenhouse gas emissions

bull Conduct system analyses including and excluding long-term storage using policy

scenarios identified and from these analyses estimate the value of hydrogen

energy storage to the overall system under those scenarios

bull Determine what value the government could assign to otherwise curtailed

renewables to make multi-dayweek scale hydrogen (and other) energy storage

economical

Community Energy for Load Leveling and Vehicle Fueling

bull Conduct sensitivity analyses to determine what conditions are necessary for a

hydrogen system to compete with electric battery system for fueling FCV and EV

vehicles respectively with solar PV energy

bull Determine the community scale at which hydrogen storage competes with battery

storage for solar PV load leveling and vehicle fueling

Other

bull Consider investigating potential US applications for ldquopower-to-gasrdquo energy

storage systems and if deemed to have potential initiate a dynamic economic

study (supported by the relevant teams at DOE the national laboratories) to

evaluate the system wide and integrative benefits of such hydrogen storage

system for US markets

6

Appendix 1

Energy Storage for High Penetration Wind

Dr CE ldquoSandyrdquo Thomas

7

Energy Storage for High Penetration Wind

Introductionshy

This work was conducted on behalf of an HTAC subcommittee chartered with the task of determining if

hydrogen storage would enable wider grid penetration1 of intermittent renewable energy sources Both

solar energy and wind farm systems would benefit from large-scale energy storage due to three factors

especially with large utility grid penetration of intermittent renewables

bull Renewable energy utilization is often limited by electrical transmission line constraints between

the source and the electrical demand

bull Renewable energy use is sometimes limited by the lack of adequate electricity load at the time

of large renewable generation potential

bull The fossil fuel generators (typically natural gas turbines) used to ldquoFirmrdquo intermittent renewable

sources can increase greenhouse gas emissions and local pollution including increased NOx and

SOx emissions compared to using those fossil sources all the time2

The basic flow diagram for the model is shown below renewable electricity is used to generate

hydrogen with an electrolyzer That hydrogen is then stored and either used to fuel vehicles or to

generate electricity at a later time Thus excess renewable electricity can be stored for later use instead

of wasting this electricity when there is no load or when transmission capacity is limited

-

electricity to the grid

H2

-

H2 Electricity

GENERATOR to the customer

Fuel Cell

STORAGE System

Wind or PV ELECTROLYZER

COMPRESSOR

H2 amp

EXTERNAL

FUELING

Hydrogen

1 The hydrogen enabling renewables working group (HERWG) chaired by Frank Novachek of Xcel Energy

2 For example Post speculates that GHGs NOx and SOx emissions from natural gas turbines operating at part

power (where efficiency decreases) used to fill in the gaps in intermittent renewable generators may be higher

with the intermittent renewable plus gas turbine than for a system that uses a NG turbine to supply 100 of the

load in this case adding renewables may actually degrade the environment storing the excess renewable energy

as hydrogen and ldquofirmingrdquo intermittents with hydrogen-generated electricity would eliminate this possibility (see

Willem Post ldquoWind energy does little to reduce GHG emissionsrdquo available at

httptheenergycollectivecomwillem-post64492wind-energy-reduces-co2-emissions-few-percent

Hydrogen Enabling Renewables Working Group Page 1 of 17

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 2: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Introduction

In late 2010 the Hydrogen amp Fuel Cell Technical Advisory Committee chartered a

working group to examine the various ways in which hydrogen might serve as an enabler

for high penetrations (greater than 50 nationally or regionally on an energy basis) of

variable renewable energy in the United States The Hydrogen Enabling Renewables

Working Group (HERWG) began work in earnest in early 2011

Comprised of both HTAC members and other representatives with significant hydrogen

and fuel cell expertise the Working Group benefited from the extensive knowledge

experience and insights of the following members

bull Frank Novachek (HTAC Member ndash Working Group Lead)

bull Peter Bond (HTAC Member)

bull Charles Freese (HTAC Member)

bull Rob Friedland (Industry)

bull Monterey Gardiner (DOE)

bull Fred Joseck (DOE)

bull Maurice Kaya (HTAC Member)

bull Harol Koyama (HTAC Member)

bull Jason Marcinkoski (DOE)

bull Todd Ramsden (NREL)

bull Bob Shaw (HTAC Member)

bull Darlene Steward (NREL)

bull George Sverdrup (NREL)

bull Sandy Thomas (Consultant)

bull Levi Thompson (HTAC Member)

bull Daryl Wilson (Industry)

The first task was describing the future scenario where the US combined electric grid and

transportation sector were powered with more than 50 renewables nationally or

regionally on an energy basis After significant discussion the Working Group

envisioned an environment characterized by the following attributes

bull Large amounts of variable off-peak renewable energy result in significant

spillage or curtailments when it exceeds energy demand

bull Reductions seen in the cost of renewable energy versus traditional energy sources

due to high volume production and technological advances

bull Baseload power plants with lower turndown capabilities and better load following

performance

bull Large wind resources not near large load centers requiring significant

transmission investments

bull Environmental concerns and transmission constraints limiting large scale central

solar facilities thereby influencing more distributed scale solar using existing

urban and suburban open spaces including paved lots (This type of resource will

likely be interconnected to distribution grids)

2

bull Distributed and utility-scale generators such as stationary fuel cells possibly

becoming more economical and more efficient (both from energy conversion and

CO2 perspectives) than traditional utility scale thermal resources

Given this potential future the Working Group identified several potential applications

for hydrogen and fuel cells to enable high penetrations of renewables including

bull As a means for storing excess renewable energy and returning that energy to the

electric grid when needed

bull As a supplement to natural gas system using excess renewable energy for

hydrogen production to mix with natural gas

bull As an alternative energy transmission and distribution mechanism and

bull To improve renewable resource utilization through the production of vehicle fuel

using excess renewable energy

Because the elements of energy storage represent the fundamental building blocks for the

other applications the Working Group focused its attention in that area

Energy Storage for Wind Integration

To better understand the economic drivers for hydrogen energy storage systems the

Working Group developed two basic models for evaluating hydrogen energy storage

against other competing storage technologies The first was a ldquoSimple Modelrdquo based on

the basis scheme shown below for utility scale wind energy storage

A whitepaper discussing the results of the analyses conducted using this model was

developed by Dr CE ldquoSandyrdquo Thomas and is included as Appendix 1 Energy Storage

for High Penetration Wind

The conclusions from the ldquoSimple Modelrdquo analyses found that hydrogen energy storage

is competitive with all current energy storage technologies when the economic conditions

make the capture of large amounts (on the order of weeks) of otherwise curtailed wind

energy more valuable than curtailing it and letting the generation potential go to waste in

order to maintain electric system stability and control All in the Working Group agreed

that such economic conditions could exist in the ldquohigh wind penetrationrdquo scenario

3

contemplated (ie greater than 50 nationally or regionally on an energy basis)

especially if coupled with higher renewable portfolio standards andor other policies

favoring renewable energy

Community Energy Storage Systems for Load Leveling Solar Photovoltaics

and Vehicle Refueling

The second was a model for evaluating community scale solar energy storage based on

the following scheme

A whitepaper discussing the results of the analyses conducted using this model was

developed by Darlene Steward from the National Renewable Energy Laboratory and is

included as Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy

Systems with Photovoltaics for Load Leveling and Vehicle Refueling

The ldquoCommunity Energy Modelrdquo analyses produced the following conclusions

bull There is a surprisingly good match between building load PV system peak

capacity and the number of vehicles that would be served in that size of

community

bull Although results do not show a clear advantage for hydrogen energy storage load

leveling or vehicle refueling the economics could become competitive with

larger systems (on the order of 15000 kW peak capacity PV systems)

bull The additional equipment for the hydrogen system hurts the economics for

smaller systems

bull The flexibility of the hydrogen system configuration improves the economics for

larger systems

bull For both hydrogen and electric vehicles diverting more electricity from the PV

system improves the economics but the effect is more pronounced for the

hydrogen system

4

Other Energy Storage Approaches

Near the end of the of the Working Grouprsquos efforts new information was being

discussed about approaches to storing renewable energy as hydrogen in the nationrsquos

existing natural gas system In Europe there are now more than twenty so called

ldquopower-to-gasrdquo hydrogen energy storage demonstration projects which have been

launched in the last 18 months ndash more than any other technology platform for utility

scale storage Though the Working Group did not delve into this hydrogen storage

pathway in significant detail the concept is intriguing to several of its members and

could possibly have applications for the US

Overall Conclusions amp Recommendations

As the nationrsquos renewable generating capacity (solar and wind) expands to deliver a

significant fraction of the total electric energy generated (somewhere greater than 30

percent on an energy basis nationally) both short and long term energy storage will likely

be very desirable if not required The Working Group considered a scenario where the

penetration of renewables was 50 on an energy basis Under this scenario the Working

Group assumed that environmental policies would likely be in place influencing grid

economics to maximize the use of renewable energy such that using curtailment as a

means to maintain grid stability would be much a much more costly control measure than

it is today If that is the case there would conceivably be economic benefits to storing

weeks or more of otherwise curtailed renewable energy during peak output periods in

high penetration renewable regions for use during periods when the stored renewable

energy can be delivered in order to reduce the need for greenhouse gas emitting

generation

Hydrogen technology as shown by ldquoSimple Modelrdquo study (Appendix 1) has the most

economical and greatest storage capacity for absorbing and redeploying energy generated

from renewable generation when compared to batteries compressed air energy storage

and pumped hydro storage solutions when the storage requirement is in terms of weeks

or longer Because of this hydrogen energy storage could be an essential contributor

to enabling renewables at the high penetrations contemplated by the Working Group

Although results do not show a clear advantage for hydrogen energy storage load leveling

or vehicle refueling at smaller scales studied in this effort the economics could become

competitive with larger systems especially for larger systems (on the order of 15000 kW

peak capacity PV systems) Such a system would also be capable of providing both fully

renewable fuel and electric grid stabilization benefits

Continuing assessment of the economic viability of hydrogen production as a renewable

energy storage pathway should be a high priority for DOE and the renewableelectric

industry working in partnership

5

Recommendations

Energy Storage for Wind Integration

bull Determine if there are national policies being considered that would significantly

increase renewable penetrations as a means to reduce greenhouse gas emissions

bull Conduct system analyses including and excluding long-term storage using policy

scenarios identified and from these analyses estimate the value of hydrogen

energy storage to the overall system under those scenarios

bull Determine what value the government could assign to otherwise curtailed

renewables to make multi-dayweek scale hydrogen (and other) energy storage

economical

Community Energy for Load Leveling and Vehicle Fueling

bull Conduct sensitivity analyses to determine what conditions are necessary for a

hydrogen system to compete with electric battery system for fueling FCV and EV

vehicles respectively with solar PV energy

bull Determine the community scale at which hydrogen storage competes with battery

storage for solar PV load leveling and vehicle fueling

Other

bull Consider investigating potential US applications for ldquopower-to-gasrdquo energy

storage systems and if deemed to have potential initiate a dynamic economic

study (supported by the relevant teams at DOE the national laboratories) to

evaluate the system wide and integrative benefits of such hydrogen storage

system for US markets

6

Appendix 1

Energy Storage for High Penetration Wind

Dr CE ldquoSandyrdquo Thomas

7

Energy Storage for High Penetration Wind

Introductionshy

This work was conducted on behalf of an HTAC subcommittee chartered with the task of determining if

hydrogen storage would enable wider grid penetration1 of intermittent renewable energy sources Both

solar energy and wind farm systems would benefit from large-scale energy storage due to three factors

especially with large utility grid penetration of intermittent renewables

bull Renewable energy utilization is often limited by electrical transmission line constraints between

the source and the electrical demand

bull Renewable energy use is sometimes limited by the lack of adequate electricity load at the time

of large renewable generation potential

bull The fossil fuel generators (typically natural gas turbines) used to ldquoFirmrdquo intermittent renewable

sources can increase greenhouse gas emissions and local pollution including increased NOx and

SOx emissions compared to using those fossil sources all the time2

The basic flow diagram for the model is shown below renewable electricity is used to generate

hydrogen with an electrolyzer That hydrogen is then stored and either used to fuel vehicles or to

generate electricity at a later time Thus excess renewable electricity can be stored for later use instead

of wasting this electricity when there is no load or when transmission capacity is limited

-

electricity to the grid

H2

-

H2 Electricity

GENERATOR to the customer

Fuel Cell

STORAGE System

Wind or PV ELECTROLYZER

COMPRESSOR

H2 amp

EXTERNAL

FUELING

Hydrogen

1 The hydrogen enabling renewables working group (HERWG) chaired by Frank Novachek of Xcel Energy

2 For example Post speculates that GHGs NOx and SOx emissions from natural gas turbines operating at part

power (where efficiency decreases) used to fill in the gaps in intermittent renewable generators may be higher

with the intermittent renewable plus gas turbine than for a system that uses a NG turbine to supply 100 of the

load in this case adding renewables may actually degrade the environment storing the excess renewable energy

as hydrogen and ldquofirmingrdquo intermittents with hydrogen-generated electricity would eliminate this possibility (see

Willem Post ldquoWind energy does little to reduce GHG emissionsrdquo available at

httptheenergycollectivecomwillem-post64492wind-energy-reduces-co2-emissions-few-percent

Hydrogen Enabling Renewables Working Group Page 1 of 17

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 3: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

bull Distributed and utility-scale generators such as stationary fuel cells possibly

becoming more economical and more efficient (both from energy conversion and

CO2 perspectives) than traditional utility scale thermal resources

Given this potential future the Working Group identified several potential applications

for hydrogen and fuel cells to enable high penetrations of renewables including

bull As a means for storing excess renewable energy and returning that energy to the

electric grid when needed

bull As a supplement to natural gas system using excess renewable energy for

hydrogen production to mix with natural gas

bull As an alternative energy transmission and distribution mechanism and

bull To improve renewable resource utilization through the production of vehicle fuel

using excess renewable energy

Because the elements of energy storage represent the fundamental building blocks for the

other applications the Working Group focused its attention in that area

Energy Storage for Wind Integration

To better understand the economic drivers for hydrogen energy storage systems the

Working Group developed two basic models for evaluating hydrogen energy storage

against other competing storage technologies The first was a ldquoSimple Modelrdquo based on

the basis scheme shown below for utility scale wind energy storage

A whitepaper discussing the results of the analyses conducted using this model was

developed by Dr CE ldquoSandyrdquo Thomas and is included as Appendix 1 Energy Storage

for High Penetration Wind

The conclusions from the ldquoSimple Modelrdquo analyses found that hydrogen energy storage

is competitive with all current energy storage technologies when the economic conditions

make the capture of large amounts (on the order of weeks) of otherwise curtailed wind

energy more valuable than curtailing it and letting the generation potential go to waste in

order to maintain electric system stability and control All in the Working Group agreed

that such economic conditions could exist in the ldquohigh wind penetrationrdquo scenario

3

contemplated (ie greater than 50 nationally or regionally on an energy basis)

especially if coupled with higher renewable portfolio standards andor other policies

favoring renewable energy

Community Energy Storage Systems for Load Leveling Solar Photovoltaics

and Vehicle Refueling

The second was a model for evaluating community scale solar energy storage based on

the following scheme

A whitepaper discussing the results of the analyses conducted using this model was

developed by Darlene Steward from the National Renewable Energy Laboratory and is

included as Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy

Systems with Photovoltaics for Load Leveling and Vehicle Refueling

The ldquoCommunity Energy Modelrdquo analyses produced the following conclusions

bull There is a surprisingly good match between building load PV system peak

capacity and the number of vehicles that would be served in that size of

community

bull Although results do not show a clear advantage for hydrogen energy storage load

leveling or vehicle refueling the economics could become competitive with

larger systems (on the order of 15000 kW peak capacity PV systems)

bull The additional equipment for the hydrogen system hurts the economics for

smaller systems

bull The flexibility of the hydrogen system configuration improves the economics for

larger systems

bull For both hydrogen and electric vehicles diverting more electricity from the PV

system improves the economics but the effect is more pronounced for the

hydrogen system

4

Other Energy Storage Approaches

Near the end of the of the Working Grouprsquos efforts new information was being

discussed about approaches to storing renewable energy as hydrogen in the nationrsquos

existing natural gas system In Europe there are now more than twenty so called

ldquopower-to-gasrdquo hydrogen energy storage demonstration projects which have been

launched in the last 18 months ndash more than any other technology platform for utility

scale storage Though the Working Group did not delve into this hydrogen storage

pathway in significant detail the concept is intriguing to several of its members and

could possibly have applications for the US

Overall Conclusions amp Recommendations

As the nationrsquos renewable generating capacity (solar and wind) expands to deliver a

significant fraction of the total electric energy generated (somewhere greater than 30

percent on an energy basis nationally) both short and long term energy storage will likely

be very desirable if not required The Working Group considered a scenario where the

penetration of renewables was 50 on an energy basis Under this scenario the Working

Group assumed that environmental policies would likely be in place influencing grid

economics to maximize the use of renewable energy such that using curtailment as a

means to maintain grid stability would be much a much more costly control measure than

it is today If that is the case there would conceivably be economic benefits to storing

weeks or more of otherwise curtailed renewable energy during peak output periods in

high penetration renewable regions for use during periods when the stored renewable

energy can be delivered in order to reduce the need for greenhouse gas emitting

generation

Hydrogen technology as shown by ldquoSimple Modelrdquo study (Appendix 1) has the most

economical and greatest storage capacity for absorbing and redeploying energy generated

from renewable generation when compared to batteries compressed air energy storage

and pumped hydro storage solutions when the storage requirement is in terms of weeks

or longer Because of this hydrogen energy storage could be an essential contributor

to enabling renewables at the high penetrations contemplated by the Working Group

Although results do not show a clear advantage for hydrogen energy storage load leveling

or vehicle refueling at smaller scales studied in this effort the economics could become

competitive with larger systems especially for larger systems (on the order of 15000 kW

peak capacity PV systems) Such a system would also be capable of providing both fully

renewable fuel and electric grid stabilization benefits

Continuing assessment of the economic viability of hydrogen production as a renewable

energy storage pathway should be a high priority for DOE and the renewableelectric

industry working in partnership

5

Recommendations

Energy Storage for Wind Integration

bull Determine if there are national policies being considered that would significantly

increase renewable penetrations as a means to reduce greenhouse gas emissions

bull Conduct system analyses including and excluding long-term storage using policy

scenarios identified and from these analyses estimate the value of hydrogen

energy storage to the overall system under those scenarios

bull Determine what value the government could assign to otherwise curtailed

renewables to make multi-dayweek scale hydrogen (and other) energy storage

economical

Community Energy for Load Leveling and Vehicle Fueling

bull Conduct sensitivity analyses to determine what conditions are necessary for a

hydrogen system to compete with electric battery system for fueling FCV and EV

vehicles respectively with solar PV energy

bull Determine the community scale at which hydrogen storage competes with battery

storage for solar PV load leveling and vehicle fueling

Other

bull Consider investigating potential US applications for ldquopower-to-gasrdquo energy

storage systems and if deemed to have potential initiate a dynamic economic

study (supported by the relevant teams at DOE the national laboratories) to

evaluate the system wide and integrative benefits of such hydrogen storage

system for US markets

6

Appendix 1

Energy Storage for High Penetration Wind

Dr CE ldquoSandyrdquo Thomas

7

Energy Storage for High Penetration Wind

Introductionshy

This work was conducted on behalf of an HTAC subcommittee chartered with the task of determining if

hydrogen storage would enable wider grid penetration1 of intermittent renewable energy sources Both

solar energy and wind farm systems would benefit from large-scale energy storage due to three factors

especially with large utility grid penetration of intermittent renewables

bull Renewable energy utilization is often limited by electrical transmission line constraints between

the source and the electrical demand

bull Renewable energy use is sometimes limited by the lack of adequate electricity load at the time

of large renewable generation potential

bull The fossil fuel generators (typically natural gas turbines) used to ldquoFirmrdquo intermittent renewable

sources can increase greenhouse gas emissions and local pollution including increased NOx and

SOx emissions compared to using those fossil sources all the time2

The basic flow diagram for the model is shown below renewable electricity is used to generate

hydrogen with an electrolyzer That hydrogen is then stored and either used to fuel vehicles or to

generate electricity at a later time Thus excess renewable electricity can be stored for later use instead

of wasting this electricity when there is no load or when transmission capacity is limited

-

electricity to the grid

H2

-

H2 Electricity

GENERATOR to the customer

Fuel Cell

STORAGE System

Wind or PV ELECTROLYZER

COMPRESSOR

H2 amp

EXTERNAL

FUELING

Hydrogen

1 The hydrogen enabling renewables working group (HERWG) chaired by Frank Novachek of Xcel Energy

2 For example Post speculates that GHGs NOx and SOx emissions from natural gas turbines operating at part

power (where efficiency decreases) used to fill in the gaps in intermittent renewable generators may be higher

with the intermittent renewable plus gas turbine than for a system that uses a NG turbine to supply 100 of the

load in this case adding renewables may actually degrade the environment storing the excess renewable energy

as hydrogen and ldquofirmingrdquo intermittents with hydrogen-generated electricity would eliminate this possibility (see

Willem Post ldquoWind energy does little to reduce GHG emissionsrdquo available at

httptheenergycollectivecomwillem-post64492wind-energy-reduces-co2-emissions-few-percent

Hydrogen Enabling Renewables Working Group Page 1 of 17

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 4: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

contemplated (ie greater than 50 nationally or regionally on an energy basis)

especially if coupled with higher renewable portfolio standards andor other policies

favoring renewable energy

Community Energy Storage Systems for Load Leveling Solar Photovoltaics

and Vehicle Refueling

The second was a model for evaluating community scale solar energy storage based on

the following scheme

A whitepaper discussing the results of the analyses conducted using this model was

developed by Darlene Steward from the National Renewable Energy Laboratory and is

included as Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy

Systems with Photovoltaics for Load Leveling and Vehicle Refueling

The ldquoCommunity Energy Modelrdquo analyses produced the following conclusions

bull There is a surprisingly good match between building load PV system peak

capacity and the number of vehicles that would be served in that size of

community

bull Although results do not show a clear advantage for hydrogen energy storage load

leveling or vehicle refueling the economics could become competitive with

larger systems (on the order of 15000 kW peak capacity PV systems)

bull The additional equipment for the hydrogen system hurts the economics for

smaller systems

bull The flexibility of the hydrogen system configuration improves the economics for

larger systems

bull For both hydrogen and electric vehicles diverting more electricity from the PV

system improves the economics but the effect is more pronounced for the

hydrogen system

4

Other Energy Storage Approaches

Near the end of the of the Working Grouprsquos efforts new information was being

discussed about approaches to storing renewable energy as hydrogen in the nationrsquos

existing natural gas system In Europe there are now more than twenty so called

ldquopower-to-gasrdquo hydrogen energy storage demonstration projects which have been

launched in the last 18 months ndash more than any other technology platform for utility

scale storage Though the Working Group did not delve into this hydrogen storage

pathway in significant detail the concept is intriguing to several of its members and

could possibly have applications for the US

Overall Conclusions amp Recommendations

As the nationrsquos renewable generating capacity (solar and wind) expands to deliver a

significant fraction of the total electric energy generated (somewhere greater than 30

percent on an energy basis nationally) both short and long term energy storage will likely

be very desirable if not required The Working Group considered a scenario where the

penetration of renewables was 50 on an energy basis Under this scenario the Working

Group assumed that environmental policies would likely be in place influencing grid

economics to maximize the use of renewable energy such that using curtailment as a

means to maintain grid stability would be much a much more costly control measure than

it is today If that is the case there would conceivably be economic benefits to storing

weeks or more of otherwise curtailed renewable energy during peak output periods in

high penetration renewable regions for use during periods when the stored renewable

energy can be delivered in order to reduce the need for greenhouse gas emitting

generation

Hydrogen technology as shown by ldquoSimple Modelrdquo study (Appendix 1) has the most

economical and greatest storage capacity for absorbing and redeploying energy generated

from renewable generation when compared to batteries compressed air energy storage

and pumped hydro storage solutions when the storage requirement is in terms of weeks

or longer Because of this hydrogen energy storage could be an essential contributor

to enabling renewables at the high penetrations contemplated by the Working Group

Although results do not show a clear advantage for hydrogen energy storage load leveling

or vehicle refueling at smaller scales studied in this effort the economics could become

competitive with larger systems especially for larger systems (on the order of 15000 kW

peak capacity PV systems) Such a system would also be capable of providing both fully

renewable fuel and electric grid stabilization benefits

Continuing assessment of the economic viability of hydrogen production as a renewable

energy storage pathway should be a high priority for DOE and the renewableelectric

industry working in partnership

5

Recommendations

Energy Storage for Wind Integration

bull Determine if there are national policies being considered that would significantly

increase renewable penetrations as a means to reduce greenhouse gas emissions

bull Conduct system analyses including and excluding long-term storage using policy

scenarios identified and from these analyses estimate the value of hydrogen

energy storage to the overall system under those scenarios

bull Determine what value the government could assign to otherwise curtailed

renewables to make multi-dayweek scale hydrogen (and other) energy storage

economical

Community Energy for Load Leveling and Vehicle Fueling

bull Conduct sensitivity analyses to determine what conditions are necessary for a

hydrogen system to compete with electric battery system for fueling FCV and EV

vehicles respectively with solar PV energy

bull Determine the community scale at which hydrogen storage competes with battery

storage for solar PV load leveling and vehicle fueling

Other

bull Consider investigating potential US applications for ldquopower-to-gasrdquo energy

storage systems and if deemed to have potential initiate a dynamic economic

study (supported by the relevant teams at DOE the national laboratories) to

evaluate the system wide and integrative benefits of such hydrogen storage

system for US markets

6

Appendix 1

Energy Storage for High Penetration Wind

Dr CE ldquoSandyrdquo Thomas

7

Energy Storage for High Penetration Wind

Introductionshy

This work was conducted on behalf of an HTAC subcommittee chartered with the task of determining if

hydrogen storage would enable wider grid penetration1 of intermittent renewable energy sources Both

solar energy and wind farm systems would benefit from large-scale energy storage due to three factors

especially with large utility grid penetration of intermittent renewables

bull Renewable energy utilization is often limited by electrical transmission line constraints between

the source and the electrical demand

bull Renewable energy use is sometimes limited by the lack of adequate electricity load at the time

of large renewable generation potential

bull The fossil fuel generators (typically natural gas turbines) used to ldquoFirmrdquo intermittent renewable

sources can increase greenhouse gas emissions and local pollution including increased NOx and

SOx emissions compared to using those fossil sources all the time2

The basic flow diagram for the model is shown below renewable electricity is used to generate

hydrogen with an electrolyzer That hydrogen is then stored and either used to fuel vehicles or to

generate electricity at a later time Thus excess renewable electricity can be stored for later use instead

of wasting this electricity when there is no load or when transmission capacity is limited

-

electricity to the grid

H2

-

H2 Electricity

GENERATOR to the customer

Fuel Cell

STORAGE System

Wind or PV ELECTROLYZER

COMPRESSOR

H2 amp

EXTERNAL

FUELING

Hydrogen

1 The hydrogen enabling renewables working group (HERWG) chaired by Frank Novachek of Xcel Energy

2 For example Post speculates that GHGs NOx and SOx emissions from natural gas turbines operating at part

power (where efficiency decreases) used to fill in the gaps in intermittent renewable generators may be higher

with the intermittent renewable plus gas turbine than for a system that uses a NG turbine to supply 100 of the

load in this case adding renewables may actually degrade the environment storing the excess renewable energy

as hydrogen and ldquofirmingrdquo intermittents with hydrogen-generated electricity would eliminate this possibility (see

Willem Post ldquoWind energy does little to reduce GHG emissionsrdquo available at

httptheenergycollectivecomwillem-post64492wind-energy-reduces-co2-emissions-few-percent

Hydrogen Enabling Renewables Working Group Page 1 of 17

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 5: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Other Energy Storage Approaches

Near the end of the of the Working Grouprsquos efforts new information was being

discussed about approaches to storing renewable energy as hydrogen in the nationrsquos

existing natural gas system In Europe there are now more than twenty so called

ldquopower-to-gasrdquo hydrogen energy storage demonstration projects which have been

launched in the last 18 months ndash more than any other technology platform for utility

scale storage Though the Working Group did not delve into this hydrogen storage

pathway in significant detail the concept is intriguing to several of its members and

could possibly have applications for the US

Overall Conclusions amp Recommendations

As the nationrsquos renewable generating capacity (solar and wind) expands to deliver a

significant fraction of the total electric energy generated (somewhere greater than 30

percent on an energy basis nationally) both short and long term energy storage will likely

be very desirable if not required The Working Group considered a scenario where the

penetration of renewables was 50 on an energy basis Under this scenario the Working

Group assumed that environmental policies would likely be in place influencing grid

economics to maximize the use of renewable energy such that using curtailment as a

means to maintain grid stability would be much a much more costly control measure than

it is today If that is the case there would conceivably be economic benefits to storing

weeks or more of otherwise curtailed renewable energy during peak output periods in

high penetration renewable regions for use during periods when the stored renewable

energy can be delivered in order to reduce the need for greenhouse gas emitting

generation

Hydrogen technology as shown by ldquoSimple Modelrdquo study (Appendix 1) has the most

economical and greatest storage capacity for absorbing and redeploying energy generated

from renewable generation when compared to batteries compressed air energy storage

and pumped hydro storage solutions when the storage requirement is in terms of weeks

or longer Because of this hydrogen energy storage could be an essential contributor

to enabling renewables at the high penetrations contemplated by the Working Group

Although results do not show a clear advantage for hydrogen energy storage load leveling

or vehicle refueling at smaller scales studied in this effort the economics could become

competitive with larger systems especially for larger systems (on the order of 15000 kW

peak capacity PV systems) Such a system would also be capable of providing both fully

renewable fuel and electric grid stabilization benefits

Continuing assessment of the economic viability of hydrogen production as a renewable

energy storage pathway should be a high priority for DOE and the renewableelectric

industry working in partnership

5

Recommendations

Energy Storage for Wind Integration

bull Determine if there are national policies being considered that would significantly

increase renewable penetrations as a means to reduce greenhouse gas emissions

bull Conduct system analyses including and excluding long-term storage using policy

scenarios identified and from these analyses estimate the value of hydrogen

energy storage to the overall system under those scenarios

bull Determine what value the government could assign to otherwise curtailed

renewables to make multi-dayweek scale hydrogen (and other) energy storage

economical

Community Energy for Load Leveling and Vehicle Fueling

bull Conduct sensitivity analyses to determine what conditions are necessary for a

hydrogen system to compete with electric battery system for fueling FCV and EV

vehicles respectively with solar PV energy

bull Determine the community scale at which hydrogen storage competes with battery

storage for solar PV load leveling and vehicle fueling

Other

bull Consider investigating potential US applications for ldquopower-to-gasrdquo energy

storage systems and if deemed to have potential initiate a dynamic economic

study (supported by the relevant teams at DOE the national laboratories) to

evaluate the system wide and integrative benefits of such hydrogen storage

system for US markets

6

Appendix 1

Energy Storage for High Penetration Wind

Dr CE ldquoSandyrdquo Thomas

7

Energy Storage for High Penetration Wind

Introductionshy

This work was conducted on behalf of an HTAC subcommittee chartered with the task of determining if

hydrogen storage would enable wider grid penetration1 of intermittent renewable energy sources Both

solar energy and wind farm systems would benefit from large-scale energy storage due to three factors

especially with large utility grid penetration of intermittent renewables

bull Renewable energy utilization is often limited by electrical transmission line constraints between

the source and the electrical demand

bull Renewable energy use is sometimes limited by the lack of adequate electricity load at the time

of large renewable generation potential

bull The fossil fuel generators (typically natural gas turbines) used to ldquoFirmrdquo intermittent renewable

sources can increase greenhouse gas emissions and local pollution including increased NOx and

SOx emissions compared to using those fossil sources all the time2

The basic flow diagram for the model is shown below renewable electricity is used to generate

hydrogen with an electrolyzer That hydrogen is then stored and either used to fuel vehicles or to

generate electricity at a later time Thus excess renewable electricity can be stored for later use instead

of wasting this electricity when there is no load or when transmission capacity is limited

-

electricity to the grid

H2

-

H2 Electricity

GENERATOR to the customer

Fuel Cell

STORAGE System

Wind or PV ELECTROLYZER

COMPRESSOR

H2 amp

EXTERNAL

FUELING

Hydrogen

1 The hydrogen enabling renewables working group (HERWG) chaired by Frank Novachek of Xcel Energy

2 For example Post speculates that GHGs NOx and SOx emissions from natural gas turbines operating at part

power (where efficiency decreases) used to fill in the gaps in intermittent renewable generators may be higher

with the intermittent renewable plus gas turbine than for a system that uses a NG turbine to supply 100 of the

load in this case adding renewables may actually degrade the environment storing the excess renewable energy

as hydrogen and ldquofirmingrdquo intermittents with hydrogen-generated electricity would eliminate this possibility (see

Willem Post ldquoWind energy does little to reduce GHG emissionsrdquo available at

httptheenergycollectivecomwillem-post64492wind-energy-reduces-co2-emissions-few-percent

Hydrogen Enabling Renewables Working Group Page 1 of 17

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 6: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Recommendations

Energy Storage for Wind Integration

bull Determine if there are national policies being considered that would significantly

increase renewable penetrations as a means to reduce greenhouse gas emissions

bull Conduct system analyses including and excluding long-term storage using policy

scenarios identified and from these analyses estimate the value of hydrogen

energy storage to the overall system under those scenarios

bull Determine what value the government could assign to otherwise curtailed

renewables to make multi-dayweek scale hydrogen (and other) energy storage

economical

Community Energy for Load Leveling and Vehicle Fueling

bull Conduct sensitivity analyses to determine what conditions are necessary for a

hydrogen system to compete with electric battery system for fueling FCV and EV

vehicles respectively with solar PV energy

bull Determine the community scale at which hydrogen storage competes with battery

storage for solar PV load leveling and vehicle fueling

Other

bull Consider investigating potential US applications for ldquopower-to-gasrdquo energy

storage systems and if deemed to have potential initiate a dynamic economic

study (supported by the relevant teams at DOE the national laboratories) to

evaluate the system wide and integrative benefits of such hydrogen storage

system for US markets

6

Appendix 1

Energy Storage for High Penetration Wind

Dr CE ldquoSandyrdquo Thomas

7

Energy Storage for High Penetration Wind

Introductionshy

This work was conducted on behalf of an HTAC subcommittee chartered with the task of determining if

hydrogen storage would enable wider grid penetration1 of intermittent renewable energy sources Both

solar energy and wind farm systems would benefit from large-scale energy storage due to three factors

especially with large utility grid penetration of intermittent renewables

bull Renewable energy utilization is often limited by electrical transmission line constraints between

the source and the electrical demand

bull Renewable energy use is sometimes limited by the lack of adequate electricity load at the time

of large renewable generation potential

bull The fossil fuel generators (typically natural gas turbines) used to ldquoFirmrdquo intermittent renewable

sources can increase greenhouse gas emissions and local pollution including increased NOx and

SOx emissions compared to using those fossil sources all the time2

The basic flow diagram for the model is shown below renewable electricity is used to generate

hydrogen with an electrolyzer That hydrogen is then stored and either used to fuel vehicles or to

generate electricity at a later time Thus excess renewable electricity can be stored for later use instead

of wasting this electricity when there is no load or when transmission capacity is limited

-

electricity to the grid

H2

-

H2 Electricity

GENERATOR to the customer

Fuel Cell

STORAGE System

Wind or PV ELECTROLYZER

COMPRESSOR

H2 amp

EXTERNAL

FUELING

Hydrogen

1 The hydrogen enabling renewables working group (HERWG) chaired by Frank Novachek of Xcel Energy

2 For example Post speculates that GHGs NOx and SOx emissions from natural gas turbines operating at part

power (where efficiency decreases) used to fill in the gaps in intermittent renewable generators may be higher

with the intermittent renewable plus gas turbine than for a system that uses a NG turbine to supply 100 of the

load in this case adding renewables may actually degrade the environment storing the excess renewable energy

as hydrogen and ldquofirmingrdquo intermittents with hydrogen-generated electricity would eliminate this possibility (see

Willem Post ldquoWind energy does little to reduce GHG emissionsrdquo available at

httptheenergycollectivecomwillem-post64492wind-energy-reduces-co2-emissions-few-percent

Hydrogen Enabling Renewables Working Group Page 1 of 17

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 7: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Appendix 1

Energy Storage for High Penetration Wind

Dr CE ldquoSandyrdquo Thomas

7

Energy Storage for High Penetration Wind

Introductionshy

This work was conducted on behalf of an HTAC subcommittee chartered with the task of determining if

hydrogen storage would enable wider grid penetration1 of intermittent renewable energy sources Both

solar energy and wind farm systems would benefit from large-scale energy storage due to three factors

especially with large utility grid penetration of intermittent renewables

bull Renewable energy utilization is often limited by electrical transmission line constraints between

the source and the electrical demand

bull Renewable energy use is sometimes limited by the lack of adequate electricity load at the time

of large renewable generation potential

bull The fossil fuel generators (typically natural gas turbines) used to ldquoFirmrdquo intermittent renewable

sources can increase greenhouse gas emissions and local pollution including increased NOx and

SOx emissions compared to using those fossil sources all the time2

The basic flow diagram for the model is shown below renewable electricity is used to generate

hydrogen with an electrolyzer That hydrogen is then stored and either used to fuel vehicles or to

generate electricity at a later time Thus excess renewable electricity can be stored for later use instead

of wasting this electricity when there is no load or when transmission capacity is limited

-

electricity to the grid

H2

-

H2 Electricity

GENERATOR to the customer

Fuel Cell

STORAGE System

Wind or PV ELECTROLYZER

COMPRESSOR

H2 amp

EXTERNAL

FUELING

Hydrogen

1 The hydrogen enabling renewables working group (HERWG) chaired by Frank Novachek of Xcel Energy

2 For example Post speculates that GHGs NOx and SOx emissions from natural gas turbines operating at part

power (where efficiency decreases) used to fill in the gaps in intermittent renewable generators may be higher

with the intermittent renewable plus gas turbine than for a system that uses a NG turbine to supply 100 of the

load in this case adding renewables may actually degrade the environment storing the excess renewable energy

as hydrogen and ldquofirmingrdquo intermittents with hydrogen-generated electricity would eliminate this possibility (see

Willem Post ldquoWind energy does little to reduce GHG emissionsrdquo available at

httptheenergycollectivecomwillem-post64492wind-energy-reduces-co2-emissions-few-percent

Hydrogen Enabling Renewables Working Group Page 1 of 17

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 8: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

Introductionshy

This work was conducted on behalf of an HTAC subcommittee chartered with the task of determining if

hydrogen storage would enable wider grid penetration1 of intermittent renewable energy sources Both

solar energy and wind farm systems would benefit from large-scale energy storage due to three factors

especially with large utility grid penetration of intermittent renewables

bull Renewable energy utilization is often limited by electrical transmission line constraints between

the source and the electrical demand

bull Renewable energy use is sometimes limited by the lack of adequate electricity load at the time

of large renewable generation potential

bull The fossil fuel generators (typically natural gas turbines) used to ldquoFirmrdquo intermittent renewable

sources can increase greenhouse gas emissions and local pollution including increased NOx and

SOx emissions compared to using those fossil sources all the time2

The basic flow diagram for the model is shown below renewable electricity is used to generate

hydrogen with an electrolyzer That hydrogen is then stored and either used to fuel vehicles or to

generate electricity at a later time Thus excess renewable electricity can be stored for later use instead

of wasting this electricity when there is no load or when transmission capacity is limited

-

electricity to the grid

H2

-

H2 Electricity

GENERATOR to the customer

Fuel Cell

STORAGE System

Wind or PV ELECTROLYZER

COMPRESSOR

H2 amp

EXTERNAL

FUELING

Hydrogen

1 The hydrogen enabling renewables working group (HERWG) chaired by Frank Novachek of Xcel Energy

2 For example Post speculates that GHGs NOx and SOx emissions from natural gas turbines operating at part

power (where efficiency decreases) used to fill in the gaps in intermittent renewable generators may be higher

with the intermittent renewable plus gas turbine than for a system that uses a NG turbine to supply 100 of the

load in this case adding renewables may actually degrade the environment storing the excess renewable energy

as hydrogen and ldquofirmingrdquo intermittents with hydrogen-generated electricity would eliminate this possibility (see

Willem Post ldquoWind energy does little to reduce GHG emissionsrdquo available at

httptheenergycollectivecomwillem-post64492wind-energy-reduces-co2-emissions-few-percent

Hydrogen Enabling Renewables Working Group Page 1 of 17

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 9: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

This report compares three types of bulk energy storage

bull Battery storage

bull Hydrogen storage

bull Compressed air energy storage (CAES)

We do not address pumped hydro storage since sites to store large reservoirs of water are limited

Wind Energy

Wind energy is the most problematic since wind resources tend to peak at night in the winter months

while electrical loads typically peak in late summer afternoons

Y H Wan of NREL has explored multi-year wind output data from four wind farms at these locations3

bull Lake Barton Minnesota (104 MW peak power)

bull Storm Lake Iowa (113 MW peak)

bull Blue Canyon Oklahoma (75 MW)

bull Trent Mesa Texas (150 MW)

To back up these intermittent wind sources with hydrogen storage the fuel cell output power should be

at least equal to the average wind power The average capacity factor for wind farms in the US was 33

according to data from 20114 Thus the average wind power would vary between 25MW and 50 MW so

the fuel cell system used to convert stored hydrogen back to electricity should have a peak power rating

of at least 25MW or larger for higher power wind farms we use 25-MW fuel cell systems in this model

Battery and CAES Input Data

The battery data for this model were taken from an EPRI report5 The CAES (compressed air energy

storage) data were taken from another EPRI presentation6

3 Y H Wan Long-Term Wind Variability NRELTP=5500-53637 January 2012 available at

httpwwwnrelgovdocsfy12osti53637pdf 4

R Wiser amp M Bolinger 2011 Wind Technologies Market Report Lawrence Berkeley Laboratory August 2012shyavailable at httpwww1eereenergygovwindpdfs2011_wind_technologies_market_reportpdfshy5

D Rastler Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs amp BenefitsshyElectric Power Research Institute Report 1020676 December 2010 Table 4 available atshyhttplargestanfordeducourses2011ph240jiang1docsrastlerpdf 6

R Schainker Compressed Air Energy Storage (CAES)-Executive Summary (Electric Power Research Institute)

August 2010 Slide 8 shown on the next page available at

httpdisgenepricomdownloadsEPRI20CAES20Demo20ProjExec20OverviewDeep20Dive20Slidesby

20R20SchainkerAuguat202010pdf

Hydrogen Enabling Renewables Working Group Page 2 of 17

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 10: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

Table 1 Model input data for battery and compressed air energy storage systems7

$kW $kWh Efficiency Low High Low High Low High

Adv PbA 950 1590 425 475 90 85 Zn Br 1450 1750 290 350 60 60 FeCr 1800 1900 360 380 75 75 ZnAir 1440 1700 290 340 75 75 NaS 3100 3300 520 550 75 75 CAES-Above 800 900 200 240 90 90 CAES-below 640 730 1 2 90 90 Li-Ion 1085 1550 900 1700 92 87

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S Battery Data H-131122012

Two different cost methodologies were used in these EPRI reports the battery cost data depend only on

the energy ($kWh) costs times the stored energy8 while the CAES data from Schainker depend on both

the power level and the energy stored

Figure 1 CAES cost data Slide 8 from the R Schainker presentation (reference 5 above)

[Battery cost data from this slide were not used in this model]

7 The Li-ion battery costs were taken from the EPRI multi-megawatt systems for ldquoenergy storage for Utility TampD

support applicationsrdquo their Li-ion costs for energy storage for ldquoISO fast frequency regulation and renewables

integrationrdquo were even higher at $4340kWh to $6200kWh all taken from the EPRI Table 4 in reference 5 above 8

EPRI apparently folded in the power demand charges into an overall $kWh cost estimate

Hydrogen Enabling Renewables Working Group Page 3 of 17

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 11: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

Hydrogen System Input Data

Table 2 Input data for hydrogenFC storage system coats and efficiencies

Near- term medium-term Long-term Electrolyzer HHV efficiency 793 817 877 Electrolyzer Capex $1500 kW $1000 kW $380 kW Compressor efficiency 92 92 92 Compressor Capex ($kgday) 232 232 232 FC HHV efficiency 397 448 490 FC capex $1000 kW $750 kW $500 kW H2 (above ground) tank capex $807 kg $760 kg $700 kg H2 (below ground) Storage capex ($kg) 25 to 7 25 to 7 25 to 7 H2 Dispenser Capex 75000 $ 60259 $ $ 50216

Norsk Hydro 507 kW hkg = 777 HHV eff GinerProtonOnsite 889

NREL Independent Panel Review (BK-6A1-46676 Sept 2009)

DOE Targets $750kW (2008) $650kW (2012) $550kW(2015) $450kW (2020) HTAC ERWG simple mod el EPRI (Rev 10- 9 - 12 - 25MW)XLS WS Assu mptions D1612132012

The below-ground storage costs are based on geologic storage in underground caverns acquifiers or

depleted natural gas fields The total system storage costs were provided by the National Renewable

Energy Laboratory9 these costs vary with the total storage capacity as shown in Figure 2 from $250kg

for very large caverns holding more than 4 million kgs of hydrogen to $7kg for storage of less than

350000 kg of hydrogen

Figure 2 Underground (cavern) hydrogen storage costs as a function of

storage capacity

9 Private communication from Darlene Steward at NREL

Hydrogen Enabling Renewables Working Group Page 4 of 17

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 12: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

Table 3Annual OampM and Replacement input data

Replacement Costs Replacement

Interval Fraction

Replaced Annual OampM

(Years) ( of

Capex) Electrolyzer 7 25 218 Compressor 10 100 250 Storage System 002 Fuel Cell System 15 30 200 Dispenser System 090

HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S OampM D-131192012

Model Assumptions

The model assumes that the owner of the energy storage system pays 54 centskWh to purchase wind

power The owner then stores the energy and regenerates electricity when demand is high selling that

peak power electricity at a rate that will earn a 10 real after-tax return on the storage system

investment

Table 4 Financial input data for the model

Inflation rate 19 Marginal income tax rate 389 Real after-tax Rate of return required 10 Depreciation schedule Declining balance

Annual capital recovery factor 1179 HTAC simple model EPRI (Rev 10-9-12--25MW )XLS W S Dashboard (Flow Diagram) D-941192012

Hydrogen Enabling Renewables Working Group Page 5 of 17

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 13: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

Stored Electricity Price Estimates from various storage systemsshy

The stored electricity costs were set to pay for all operating costs10 for the storage system including the

purchase of the wind energy at a price of 54 centskWh the capacity-weighted average cost11 of US

wind in 2011 plus an extra amount such that the owner of the storage system earns a 10 real after-tax

$shy

$500

$1000

$1500

$2000

$2500

0 100 200 300 400 500 600

ASME (2220 - 8500 psi)

Composite (3600 psi)

Propane (266 psi)

DOT (2160 psi)

Used Propane (266 psi)

Kg of Hydrogen Storage

Storage Tank Cost ($kg of useable hydrogen)

Note composite tank costskg reflect multiple tanks not larger tanks

2 tanks

3 tanks

H2 Storage T an k CostsXLS I85 1012 2012

Figure 3 Examples of above-ground hydrogen tank costs circa 2009

return on the investment in the storage system The price of electricity is set to assure this 10 real ROI

with the economic parameters in the model (Table 4) With the battery amp hydrogen storage system

data the estimated costs for electricity

generated from stored energy are

summarized in Figure 4 The scale is expanded

in Figure 5 to show the lower cost storage

systems (excluding the high-cost Li-ion

system) Two costs are shown for the battery

and CAES storage systems corresponding to

EPRIrsquos high and low cost estimates

Figure 4 Cost of stored electricity (one days storage) with natural gas

at $7MBTU (used for CAES only)

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard BK-31711122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

1073

0 50 100 150

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

10 Annual OampM and periodic replacement costs for electrolyzers fuel cells compressors etc taxes and insuranceshy

construction loan costs (first year only two-year construction period assumed)shy11

See reference 3shy

Hydrogen Enabling Renewables Working Group Page 6 of 17

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 14: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

ricity one day storage

8 hr electrolyzer amp compressor amp 4 hr FC 10 Free electricity 6 cents kWh purchased ele

Energy Storage for High Penetration Wind

The potential lowest cost system according to

the EPRI report is the ZnAir system that is not

currently commercially available The long-

term hydrogen storage system cost at 315

centskWh is competitive with the future Znair

battery system at 274 to 31 ₵kWh and less

than the current commercial battery systems

(Li-ion NaS and PbA)12

Figures 4 amp 5 are for underground (cavern

storage of hydrogen) As shown in Figure 6

above-ground storage in pressurized hydrogen

tanks is also economic Above-ground storage

offers more flexibility since it does not require

location near geologically available

underground sites Hydrogen storage in tanks is

competitive in the long-term (332 centskWh)

with current commercially available battery

systems such as Li-ion NaS and PbA Hydrogen

long-term costs are also less than above-ground

CAES storage systems

The hydrogen storage tank cost estimate for the

long-term ($700kg) could be based on either

low-pressure propane tanks that are priced at

$724kg new or $506kg (used) as shown on

Figure 3 or existing Lincoln Composites ldquoTitanrdquo

composite hydrogen tanks that were selling for

$700kg in quantities of three in 2009

Need for longer-term storage

ct -

HT AC simple model EPRI(Rev10-9-12-25MW )XLS W S DashBoard AM-31511122012

619

431

315

336

209

392

342

324

274

479

562

370

221

457

397

339

310

503

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Li-ion

High

Low

Electricity cost from storage (centskWh)

Below-

ground

storage

Figure 5 Cost of stored electricity to yield 10 RATROI (Same as

Figure 4 with expanded scale)

Figure 6 Stored electricity costs for above-ground hydrogen

storage in tanks (one dayrsquos storage)

Energy storage times longer than one day are highly desirable for wind energy For example Figure 7

shows the spectra of wind energy from one source13 In addition to the spectral peak at one day

duration there is a dominant peak at 4 day intervals but this 4-day peak is usually associated with sites

near an ocean And there is a dominant peak at one year indicating a strong annual oscillation in wind

energy peaking in the winter and diminishing in the summer months

12 Note that all hydrogen electricity prices quoted here should be compared with peak electricity rates since the

electricity generated from stored hydrogen can be supplied during peak demand periods 13

Source Green Rhino Energy httpwwwgreenrhinoenergycomrenewablewindwind_characteristicsphp

Hydrogen Enabling Renewables Working Group Page 7 of 17

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 15: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

Figure 7 Spectral energy distribution for wind energy

Specific wind annual energy profiles14 are

shown in Figures 8-11 Figure 8 shows 10

years data and the 10-year average for a

104-MW wind farm in Lake Benton

Minnesota The average peak wind

energy in the winter is 164 times the

annual wind energy in the summer

months Note also that the annual peak

to minimum wind energy often varies

much more than the 10-year average

Figure 9 shows 7 yearsrsquo wind energy data

from the 75-MW wind farm at Blue

Canyon Oklahoma The 7-year averageshy

has a peak winter energy level that is 2

Figure 8Ten years of wind energy produced at the 104-MW Lake

Benton Minnesota wind farm (winter wind averages 16 time

summer wind)

times the summer energy level again

with large annual deviations from the average

Finally Figure 10 shows similar annual data for a 113-MW wind farm at Storm Lake Iowa where the

winter peak energy output is 24 times the average winter energy output

From these data it is apparent that there would be significant advantage if the excess winter wind

energy could be stored until the summer months when demand is typically higher to meet air

conditioning loads

14 See Reference 1 (Wan)

Hydrogen Enabling Renewables Working Group Page 8 of 17

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 16: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Natural gas is used to heat the compressed air gas in curre t CAES t t l i d

and fuel cell Technology Advisory Committee) points out th

n sys ems so some na ura gas s consume

d the current chairman of HTAC the DOE s Hydrogen

at the depletion rates of natural gas shale wells can be

Energy Storage for High Penetration Wind

Stored electricity costs as a function of storage

time

The required price of stored electricity to

achieve the 10 ROI goal are shown in Figure

12 as a function of the storage time For a few

days of storage hydrogen storage is less

expensive than the lowest cost battery option

(Znair) even for the near-term hydrogen

system For storage times longer than 6 days

the long-term hydrogen costs are less than the

cost of CAES storage with natural gas at

$7MBTU15

US Natural gas prices have been trending down

with the discovery and production of gas from

shale formations as shown in Figure 13 for

industrial users with industrial gas prices falling

below $4MBTU However the EIA in their latest

(2012) Annual Energy Outlook is projecting that

industrial gas prices will rise16 as shown in Figure

14 projecting future prices in the $450MBTU to

$8MBTU range

The impact of lower natural gas prices on the

stored electricity prices from CAES is shown in

Figure 15 Even if natural gas fell to $3MBTU

15

16

Figure 9 Seven years of wind energy data from the 75-MW

Blue Canyon Oklahoma site (winter energy is 2 times the

summer wind energy)

Figure 10 Ten years of wind energy data from the 113-

MW Storm Lake Iowa wind farm (Winter wind energy is24 times the summer wind energy)

Figure 11 Average hourly wind energy at Trent Mesa

Wind energy is also frequently higher at night

than during the day as illustrated in Figure 11

for a 150-MW wind farm in Trent Mesa Texas

John Hofmeister (the former President of Shell Oil USA an mdash rsquo Texas showing more wind energy at night than during the

day as high as 50 per year indicating that these wells will have to be replaced (or re-fractured) frequently to keep the

gas flowing thereby increasing shale gas costs over time

Hydrogen Enabling Renewables Working Group Page 9 of 17

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 17: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

H2 near-term

CAES-Hi-$7MBTU

CAES-Low-$7MBTU

H2 Med-term

H2 long-term

Energy Storage for High Penetration Wind

hydrogen storage would be less expensive than CAES for Cost of stored electricity (centskWh)

Li-Ion-Low storage times longer than 60 days in the near-term 30 Zn air -Hi

Zn Air-Low days in the mid-term and 14 days in the long-term as 140

shown in Figure 15 Note again that these prices for 120

stored energy should be compared with peak electricity 100

rates since the stored energy can be sold at any time 80

60

40

20

0

0 5 10 15 20

Storage Time (Days)

Figure 13 Recent US Industrial Natural Gas Prices

Figure 14 Industrial natural gas prices projected by the EIA

in their 2012 Annual Energy Outlook (AEO)

HT AC simpl e model EPRI (Rev 10-9-12 - 25MW XLS W S DashBoard AK-35511122012

Figure 12 Electricity price to earn 10 ROI for longer

term storage with natural gas at $7MBTU

Cost of stored electricity (centskWh)

CAES-$5MBTU NG

140

120

100

80

H2 Term Long

H2-Medium-Term

Zn Air-Low

CAES-$7MBTU NG

- -

CAES-$4MBTU NG

CAES-$3MBTU NG

H2-Near-Term 60

40

20

0

0 20 40 60

Storage Time (Days)

HT AC simp le model EPRI (REV 7-5-12-En ergy on ly)XL S W S Dash Board AH-41011132012

Longer-Term Hydrogen CHHP systems

In the future high temperature stationary fuel cells such as molten carbonate (MCFCs) phosphoric acid

fuel cells (PAFCs) or solid oxide fuel cells (SOFCs) could provide extra revenue to the storage system

owner by supplying both heat and hydrogenmdashcombined heat hydrogen and power (CHHP) systems

We consider four estimates for future SOFC costs

1 Strategic Analysis has estimated a mass production cost of $700kW for 100kWe SOFC systems

Figure 15 Stored electricity prices to yield a 10 real after-

tax ROI including variable natural gas prices for CAES storage

both hydrogen and CAES prices are for underground storage

Hydrogen Enabling Renewables Working Group Page 10 of 17

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 18: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

2shy the HTAC subcommittee has chosen $500kW as the long-term price estimate for FC systems

3shy the DOErsquos SECA has set a ldquostretchrdquo target of $400kW for SOFCs and

4shy Rivera-Tinoco et al have estimated a SOFC manufactured cost17 of $100kW or less for 250 kW

modules for cumulative production volumes less than 1 MW as shown in Figure 16 This is the

manufactured cost estimate

based on inputs from three fuel

cell companies18 To this we add

a multiplier factor of 15 to arrive

at an estimate of the selling

price19 that the hydrogen storage

operator would have to pay or

an estimated long-term price of

$150kW for an advanced SOFC

system in production Figure 16 Estimated manufacturing cost for SOFC systems by

Rivera-Tinoco et al

Strategic Analysis has estimated the mass

production costs of Stationary PEM and SOFC systems (Table 5)20 They are projecting that 100-kWe low

temperature PEM fuel cell systems (including reformer and AC inverter) could be produced for

$771kWe and costs as low as $402 to $440kWe for 100 kWe SOFC systems might be achieved in very

Table 5 Strategic Analysis estimated costs of stationary fuel cell systems in mass producion

17 R Rivera-Tinoco K Schoots amp BCC van der Zwaan Learning Curves for Solid Oxide Fuel Cells (Energy Research

Center of the Netherlands) Figure 4 available at

httpwwwenergycolumbiaedusitefilesfileLearning20Curves20for20Solid20Oxide20Fuel20Cellspdf 18

HC Starck Topsoe and Versashy19

This 15 multiplier assumes that 80 of the production cost is purchased parts and materials with a 20 Generalshyamp Administrative (GampA) markup and labor has a 25 GampA markup plus a 40 overhead markup and the sum of allshythese costs is marked up by 15 to account for profit the net result is a 15 times markup on the manufacturedshycost to obtain a priceshy20

Brian James Andrew Spisak amp Whitney Colella ldquoManufacturing Cost Analysis of Stationary Fuel Cell SystemsrdquoshyStrategic Analysis Arlington Virginia September 2012shy

Hydrogen Enabling Renewables Working Group Page 11 of 17

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 19: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

large production volumes (1000 to 50000 systems per year)

For these longer term systems we have also reduced the estimated cost of the electrolyzer based on

the 2009 NREL independent review of electrolyzer costs21 The NREL independent review used data

from six electrolyzer companies22 and reported a manufacturing cost estimate of $380kW for an

electrolyzer supplying 1500 kgday but this cost also included the compression storage and dispensing

equipment at the fueling station The DOErsquos H2A model lists a total cost of $1263 million for the

electrolyzer transformerrectifier and other electrolyzer balance of plant out of a total cost of $2254

million so the electrolyzer system accounts for 56 of the reported cost of $380kW Applying this

factor implies an electrolyzer system cost of$213kW or an estimated price of $320kW after applying

our 15 markup factor to translate manufacturing cost to selling price to the hydrogen storage system

operator In addition Sunita Satyapal the DOErsquos Hydrogen Program Manager announced at the 2011

Annual Merit Review23 that Giner and Proton had demonstrated an electrolyzer production cost of

$350kW The assumptions for these SOFC systems are compared with the base case hydrogen long-

term data in Table 6 (See Table 2 for the cost and efficiency assumptions for the Near- and Medium-

Term hydrogen options)

Table 6 cost and efficiency values used for three different long-term hydrogen storage scenarios

Hydrogen Fuel Revenue

21 J Genovese K Harg M Paster amp J Turner Current (2009) State-of-the-Art Hydrogen Production Cost Estimate

Using Water Electrolysis NRELBK-6A1-46676 September 2009shy22

Avalence Giner H2 Technologies Hydrogenics IHT and Proton Energy (now called Proton Onsite)shy23

As reported by Sunita Satyapal in her 2011 AMR presentation available atshyhttpwwwhydrogenenergygovpdfsreview11pl003_satyapal_joint_plenary_2011_opdf

Hydrogen Enabling Renewables Working Group Page 12 of 17

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 20: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

In addition to supplying electricity the hydrogen storage system can provide fuel for fuel cell electric

vehicles (FCEVs) In general hydrogen is worth more as a FCEV fuel than as a source of electricity For

example with the base case long-term hydrogen system hydrogen can be sold at $511kg which is

equivalent to gasoline selling at

$217gallon if used in a conventional

car 24 The EIA is projecting that the

average gasoline price in 2015 will be

$381gallon In the model we

assume that 50 of all cars are hybrid

electric vehicles (HEVs) and

hydrogen is priced such that the FCEV

owner will pay the same cost per mile

as the average gasoline vehicle owner

(5050 split between HEVs and ICVs)

The revenue from selling hydrogen as

a fuel then reduces the necessary

price of stored electricity in order for

the hydrogen storage system owner

to make a 10 real after-tax return on investment in addition to paying all hydrogen storage system

operating costs We assume that the storage facility sells 1530 kgyear25 of hydrogen fuel26 This

corresponds to the hydrogen demand of a mature hydrogen fueling station that fuels 300 carsday a

modern high-volume fueling station

Revenue from displaced heating fuel

The storage system owner can also reduce costs of heating (or cooling) by using the waste heat from a

SOFC to offset natural gas otherwise purchased to heat the facility In the model we use the EIArsquos

average projected cost of natural gas in 2015 at $629MBTU27 we assume that the waste heat from the

SOFC is equivalent to 30 of the HHV of the hydrogen input to the fuel cell so the total efficiency of the

SOFC is 85 (55 electrical efficiency plus 30 heat recovery)

The impact on required electricity peak prices of the hydrogen fuel and displaced natural gas revenue

streams is summarized in Figure 17 for the four long-term hydrogen scenarios described above with one

dayrsquos storage Required electricity prices can be reduced by selling hydrogen fuel and displacing natural

gas heating fuel as shown For the $150kW SOFC system a stored electricity on-peak price of 64

24 This assumes that the FCEV has 24 times higher efficiency than a gasoline ICVshy

25 This value assumes that each FCEV travels 13000 miles per year with a fuel economy of 683 mileskg and thatshy

the FCEV owner refuels once every 8 daysshy26

Initially if there are too few FCEVs to consume this much hydrogen it could be sold for other industrial uses orshythe hydrogen could be used for fuel cell fork lift trucks at warehouses and production plantsshy27

The EIA estimates that residential NG will cost $1056Kscf commercial NG at $882Kscf and Industrial NG atshy$5Kscf in 2015 and a weighted sales average of $660Kscf Assuming that NG has a heating value of 105shyMBTUKscf this translates into a weighted average NG price of $629MBTUshy

Figure 17 Required cost of on-peak electricity for one days storage for CHHP

systems to yield a 10 real after-tax return on investment

Hydrogen Enabling Renewables Working Group Page 13 of 17

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 21: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

₵kWh would be sufficient to pay for all operating expenses plus earning a 10 real after-tax ROI on the

original hydrogen storage system capital equipment For the more probable SOFC costs ($400kW to

$700kW) the on-peak required prices are still quite promising 91 to 124 centskWh including both

hydrogen fuel sales and the 30 heat recovery to offset natural gas

The required stored electricity on-peak prices

to earn the 10 real after-tax ROI are shown in

Figure 18 for one dayrsquos underground storage for

the hydrogen and other storage systems We

have added the hydrogen sales revenue and

heat recovery to the hydrogen storage long-

term case which reduces the required

electricity price from 315 ₵kWh to 102

₵kWh which is less than the price from a

Znair storage system the lowest future battery HT AC simple model EPRI (Rev 10-9-12-25MW )XLS WS Dashboard AW-3233192012

619 ckWh

431 ckWh

315 ckWh

124 ckWh

1018934677

91 ckWh

337 ckWh

209 ckWh

397 ckWh

348 ckWh

330 ckWh

279 ckWh

487 ckWh

0 20 40 60 80

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (SA=$700kW)+ H2 Rev

H2 -Long-Term ($500kW) + H2 Rev

H2 - Long-term(SECA= $400kW)+H2Rev

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS One Day Storage

Stored Electricity Price (centskWh)

price at 279 ₵kWh Figure 18 Required on-peak electricity prices for a 10 ROI for

one days storage

The long-term SOFC systems reduce the

required stored electricity prices even further

where we have assumed both hydrogen fuel

revenue and displaced natural gas credits for

waste heat recovery from these high-

temperature fuel cell systems The SOFC

electricity cost estimates of 91 to 124₵kWh

are quite promising especially since this

electricity is from storage and can be sold at

any time of day or year during peak demand

The required electricity prices for 2-months

storage are shown in Figure 19 With this

longer-term storage all hydrogen storage

systems are lower cost than any of the battery Figure 19 Required electricity prices for two months storage with the

same conditions as Figure 18

HTAC simple model EPRI (Rev 10-9-12-25MW)XLS WS Dashboard BC-3233192012

630 ckWh

441 ckWh

325 ckWh

110 ckWh

1018934677

132 ckWh

8475 ckWh

1852 ckWh

8032 ckWh

7961 ckWh

6425 ckWh

0 200 400 600 800 1000

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term (S A=$70 0k W)+ H2hellip

H2 -Long-Term ($ 500kW) + H2 Rev

H2 - Long-term(S ECA=hellip

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS

Two Months Storage

Stored Electricity Price

or CAES options by large margins Even the

near-term hydrogen storage option is 3 times less expensive than the lowest cost alternative below

ground CAES

Needless to say 6-months seasonal storage of hydrogen has an even larger advantage over the

competition As shown in Figure 20 the long-term hydrogen price required is 345 ₵kWh without

hydrogen fuel revenue21 which might be competitive for peak utility loads and the price could be

reduced to the range between 11 to 26 ₵kWh for the SOFC systems with hydrogen fuel revenue and

avoided natural gas credits Figure 20 also includes the case for generating the electricity from stored

hydrogen using a NG combustion turbine at a cost of $665kW which yields a required on-peak

electricity price of 17 ₵kWh to make the target ROI

Hydrogen Enabling Renewables Working Group Page 14 of 17

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 22: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

Conclusions

Based on our models of energy storage we HTAC simple model EPRI(Rev10- 9- 12- 25MW)XLS WS DashBoard BJ- 36212142012

833 ckWh

472 ckWh

345 ckWh

256 ckWh

166 ckWh

108 ckWh

0 50 100

H2 Storage -Near-Term

H2 Storage- Medium-Term

H2 Storage- Long-Term

H2 -Long-Term + H2 Revenue

H2 - Long-term NG CT $665kW

H2 - Long-term SOFC $150kW

CAES-Above

CAES-Below

Adv PbA

Zn Br

FeCr

ZnAir

NaS Six Months Storage

Stored Electricity Price (centskWh)

come to the following conclusions Figure 20 Required electricity prices for a 10 ROI with six

months underground storage for hydrogen (all other options are 1shy The cost of storing excessive or ldquooff the chartrdquo)

stranded renewable energy using

hydrogen is less expensive than using even advanced battery storage systems such as the ZnAir

advanced battery suggested by EPRI

2shy Long-term seasonal storage of wind energy is advantageous since winter peak wind energy is

sometimes twice the summer wind energy

3shy For longer-term storage hydrogen is less expensive than compressed air energy storage (CAES)

for storage times longer than 60 days in the near-term longer than 30 days in the medium-term

and longer than 14 days for the long-term hydrogen storage system projections

4shy If a portion of the stored hydrogen is sold to fuel for fuel cell electric vehicles (FCEVs) and

excess thermal energy from a high temperature stationary fuel cell were used to heat or cool

buildings then the stored hydrogen converted to electricity could be sold during peak electricity

demand at prices between 91 and 124 centskWh and the project would still make a 10 real

after-tax return on the hydrogen system investment

5shy With seasonal (6-month) energy storage all other storage options would require peak electricity

rates in excess of $1kWh to make the target 10 ROI

6 We conclude that hydrogen energy storage is the only cost effective method of long-term

energy storage that could enable the widespread utilization of intermittent renewables such

as wind energy

Acknowlegements

We would like to thank the members of the HTAC hydrogen enabling renewables working group for

their many contributions to this work including Bob Shaw Charles Freese Daryl Wilson George

Sverdrup Harol Koyama Jason Marcinkowski Levi Thompson Maurice Kaya Monterey Gardner Peter

Bond Rob Friedland and Todd Ramsden with special thanks to Sandy Thomas who constructed the

Hydrogen Enabling Renewables Working Group Page 15 of 17

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 23: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

computer model28 used to provide the data reported in this document and also special thanks to

Darlene Steward who developed the community hydrogen storage model and provided NREL data to

calibrate the computer model used to generate the data in this report and a special thanks to Frank

Novachek as chairman of the working group for his leadership over several years of bi-weekly

conference calls and periodic reports to the full HTAC committee

Recommendations for Future Work

While this initial work has demonstrated the value of hydrogen storage to enable greater grid

penetration of intermittent renewables we recommend several additional tasks

bull Determine if there are national policies that would significantly increase renewables penetration

bull Conduct systems analyses including and excluding long-term storage using the policy scenarios

identified above

bull Estimate the value of hydrogen energy storage to the overall system

bull Determine what value to assign the otherwise ldquospilledrdquo renewables to make multi-day scale

hydrogen (and other) energy storage economical

bull Community Energy StorageTransportation System conduct sensitivity analyses to determine

what conditions are necessary for a hydrogen system to compete with electric battery system

for fueling FCEVs and

EVs respectively with

solar PV energy

bull Model and

analyze the economics

of ldquopower-to-gasrdquo

systems that feed

renewable hydrogen

into the existing

natural gas distribution

network including

utilizing that hydrogen

for its heating value in

current natural gas

appliancersquos and also

analyzing the economics of extracting the hydrogen from the pipeline as fuel for FCEVs

bull Determine the efficacy of storing hydrogen in underground aquifers and depleted natural gas

fields29 30 One source31 warns that hydrogen can interact with microorganisms and with

28 Bob Shaw provided the initial guidance and direction for the basic architecture of this computer model

29 Some analysts have implied that hydrogen can only be stored in capped salt formations which would limit

underground storage to the Gulf region in the US For example according to one source29

(Figure 21) California

does not have any underground aquifers or domed salt caverns

Figure 21Underground storage potential in the US29

Hydrogen Enabling Renewables Working Group Page 16 of 17

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 24: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Energy Storage for High Penetration Wind

minerals that can reduce storage volume by plugging micro-porous spaces in the depleted field

or aquifer

30 Source P Sullivan W short amp N Blair NREL June 2008 ldquoModeling the Benefits of storage

technologies to wind Powerrdquo See NREL site for wind storage

httpsearchnrelgovqueryhtmlqp=site3Awwwnrelgov+site3Asamnrelgovampstyle=nrelampqs=ampqc=nrelampws=

0ampqm=0ampst=1ampnh=10amplk=1amprf=0ampoq=ampcol=nrelampqt=wind+energy+storageampx=0ampy=0 31

A Ozarslan ldquoLarge-scale hydrogen energy storage in salt cavernsrdquo International Journal of Hydrogen Energy

Vol 37 Issue 19 Pgs 14265-14277 October 2012

Hydrogen Enabling Renewables Working Group Page 17 of 17

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 25: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Appendix 2

Community Energy Analysis of Hydrogen Distributed

Energy Systems with Photovoltaics for Load Leveling

and Vehicle Refueling

Darlene Steward

8

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 26: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Community Energy Analysis of Hydrogen Distributed Energy Systems with

Photovoltaics for Load Leveling and Vehicle Refueling

Review Draft November 2013 Darlene Steward

National Renewable Energy Laboratory

Jarett Zuboy Contractor

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 27: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Executive Summary Hydrogen energy storage could complement photovoltaic (PV) electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches analyzed in this report 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and refuel hydrogen-powered vehicles

These approaches are applied to a community of 100 residences approximated by the electricity demand of a small hotel in Boulder Colorado To assess the impact of increasing PV market penetration three levels of PV power generation spanning a broad range in comparison to the communityrsquos electricity demand were studied The simulated community is served by a PV system sized at 1200 m2 (producing electricity equivalent to 50 of annual building electricity load) 4000 m2 (~170) or 7000 m2 (~290)

In the load-leveling system electricity from the PV panels satisfies building demand directly and excess PV electricity produces hydrogen via an electrolyzer A fuel cell converts the hydrogen back into electricity to serve the building demand when PV output is inadequate and grid electricity satisfies any demand that cannot be met directly by the PV system or stored hydrogen Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes For the 1200-square-meter (m2) PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2

systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kilograms (kg) (~14600 kilowatt-hours [kWh])mdashequivalent to approximately 9 days of storagemdashaccommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for the 7000-m2

system was sized to include approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

The vehicle-refueling system is similar to the load-leveling system except that vehicles use the excess energy instead of buildings and no electricity is sold back to the grid The amount of electricity produced in excess of the building load determines the number of vehiclesmdasheither hydrogen fuel cell vehicles or plug-in electric vehiclesmdashthat could be fueled in each case The vehicle-refueling methods include electrolytic hydrogen production for hydrogen-powered vehicles and battery storage for plug-in electric vehicles In the case of vehicle refueling the storage systems are sized to meet the minimum needed for a complete fill (in the case of the 1200-m2 PV system) or one day of excess PV output plus 50 percent It is assumed that vehicle fuel demand that cannot be met by the community refueling system during the winter and stretches of cloudy weather will be accommodated by nearby stations

The vehicle-refueling cost analysis is performed for two cases Case 1 in which all PV electricity output in excess of the building load is used for vehicle refueling and Case 2 in

iii

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 28: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

which all PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Table ES-1 shows the levelized cost of electricity (LCOE) from the storage system for each load-leveling scenario The systems are sized for load leveling under the constraint of a limited gridtransformer size but are not fully optimized for cost The results show a relatively complex relationship between PV system size and the economics of power generation from each system The leftmost set of results shows the LCOE of the PV-generated electricity that is routed directly to the building plus electricity that is produced from the storage system Costs tend to increase as the delta between the PV system output and the building load increases because the storage system must be larger However this upward trend in cost is balanced by better utilization of the storage equipment (electrolyzer hydrogen tanks and fuel cell) for the larger systems So the LCOE is lowest for the small PV system and highest for the mid-range system The trend in storage system utilization is illustrated by the rightmost set of results which shows the LCOE for only the stored portion of the electricity In this set of results the LCOE steadily decreases with increasing PV system size In all cases the electricity produced by either the battery or hydrogen storage system is more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power to be cost effective

Table ES-1 Load-Leveling System Costs with and without PV Costs Included

Total Direct Levelized Cost of All

Levelized Electricity Total Direct Capital Cost (Direct Supply to Cost of Capital Cost Scenario Including PV Building + Stored Stored without PV System Electricity) (centkWh) ElectricitySystem ($000)($000) ( of output to (centkWh)b

storage)b

1200-m2 PVstorage system $727 33 (32) $271 109

4000-m2 PVstorage system $2958 57 (70) $1438 62

7000-m2 PVstorage systema $3393 45 (38) $733 36 aThe 7000-m2 PV system produces close to 3 times the building load Therefore nearly the entire building load can be supplied with the PV system direct output plus stored electricity After supplying the building load a large fraction of the PV system output (44) is sold to the grid at the cost of producing itb Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table ES-2) With the 4000-m2 PV system the number of fuel cell vehicles served (70ndash80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000 m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWhndash$039kWh also decreasing with increasing system size The levelized cost of hydrogen is high for even the most favorable

iv

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 29: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

case in comparison to expected early commercial station hydrogen costs However the system produces 100 renewable hydrogen and provides potentially valuable load leveling of distributed PV output allowing for grid integration of much larger PV systems The hydrogen system cost reduction for the larger systems is due as for the load leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

For both the load leveling and vehicle fueling scenarios the system cost is highly dependent on component costs and system configuration In all scenarios the load-leveling or refueling system reduces peaks and valleys in grid demand and energy fed onto the grid The vehicle refueling scenarios provide as much smoothing of the PV system outputgrid demand as the load-leveling scenarios Storage andor diversion of excess electricity from distributed generation systems that can smooth seasonal and daily variations in PV system output may be advantageous for very high levels of PV penetration

v

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 30: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Table ES-2 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size Production Vehicles H2 LCOE H2 Cost Production Vehicles H2 LCOE H2 Cost (m2) (kg H 2yr) Served ($kg) (centmi) (kg H 2yr) Served ($kg) (centmi)

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicles [DOE FuelEconomygov website accessed June 20 2013 httpwwwfueleconomygov]) still results in a lower per-mile cost for the battery-electric vehicle system

vi

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 31: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Table of Contents List of Figures viii List of Tables ix 1 Introduction 1 2 System Descriptions and Energy Flows 2

21 Building Profile and PV Systems 2 22 Load-Leveling System 3 23 Vehicle-Refueling System 10 24 Comparison of Load Leveling and Vehicle-Refueling Systems 17

3 Cost Analysis Results 22 31 Load Leveling 25 32 Vehicle Refueling 28

4 Conclusions 32 5 Future Work 34 6 References 35

vii

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 32: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

List of Figures Figure 1 Building electricity demand profile selected day in July 3 Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system 4

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV) 6

Figure 4 Seasonal variation with 1200 m2 of PV four selected days 6 Figure 5 Seasonal variation with 4000 m2 of PV 8 Figure 6 Seasonal variation with 7000 m2 of PV 8

There is no energy flow from the vehicle-refueling system to the building 12

vehicle-refueling system to the building 13

from the vehicle-refueling system to the building 13Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right) 13 Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system) 14

electricity supply and hydrogen produced (or electricity to storage) during a typical day in July (4000-m2 PV system)mdashHydrogen Case 1 14

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system 18Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system 19 Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV

system 20Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 21 Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system 22 Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top)

4000-m2 PV system (center) and 7000-m2 PV system (bottom) 27 Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system

case 28 Figure 20 Total PV-hydrogen system capital costs (Case 1) 29 Figure 21 Hydrogen system capital costs (Case 1) 30Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2 30

vehicle [EV]) systems Case 1 31

viii

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 33: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

List of Tables Table ES-1 Load-Leveling System Costs with and without PV Costs Included iv Table ES-2 Summary of Vehicle Refueling Cost Results viTable 1 Key Characteristics of the Boulder Hotel Building Load Profile 2 Table 2 Key PV System Performance Parameters 3 Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor 5 Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System 7 Table 5 Summary of Energy Flows for 4000-m2 PV System 9 Table 6 Summary of Energy Flows for 7000-m2 PV System 10Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 1 15Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric

Systems)mdashCase 2 16 Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios 23Table 10 Financial Analysis Parameters 24 Table 11 Load-Leveling System Costs with and without PV Costs Included 26 Table 12 Summary of Vehicle Refueling Cost Results 32

ix

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 34: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

1 Introduction Higher penetrations of distributed renewable energy systems specifically residential rooftop photovoltaic (PV) systems could affect loading and capacity margins for community-level electricity distribution systems PV output typically peaks slightly before the peak daily electricity demand This offset could cause overloading of local distribution equipment at high PV penetration levels The addition of plug-in electric vehicles which would primarily be charged at residences might also affect loading of distribution systems Several researchers have analyzed the effect of electric and plug-in hybrid electric vehicles on the grid (Denholm et al 2013 Srivastava et al 2010) Denholm et al analyzed options for integrating PV and electric vehicle charging finding benefits of mid-day vehicle charging for reduction of petroleum use and potentially enabling smaller vehicle batteries While Denholm et alrsquos analysis focused on mid-day charging at commercial places of business this analysis addresses the unique challenges of integrating large penetrations of PV at the residential level where grid capacity constraints may be most acute

Hydrogen (H2) energy storage could complement PV electricity generation at the community level Because PV generation is intermittent strategies must be implemented to integrate it into the electricity system Hydrogen and fuel cell technologies offer possible PV integration strategies including two community-level approaches discussed in this paper 1) using hydrogen production storage and reconversion to electricity to level PV generation and grid loads and 2) using hydrogen production and storage to capture peak PV generation and fuel hydrogen-powered vehicles

Energy storage is one potential strategy for addressing load variations due to high residential PV penetration This brief study analyzes the costs and benefits of installing hydrogen-based energy storage for community-level PV system load leveling It examines the effects of increasing PV penetration in residential neighborhoods on the use of grid electricity and the opportunity for hydrogen energy storage

Peak PV output could also be diverted for use directly in electric vehicles or after conversion to hydrogen in hydrogen-powered fuel cell vehicles In this analysis the electricity or hydrogen is temporarily stored in batteries or hydrogen tanks so that vehicles can be refueled when the residents return home in the evening

The target scenario for the study is approximately 100 single-family detached houses served by a single pad-mounted transformer at the end of a grid distribution line As PV penetration increases for these houses what are the opportunities and economics for energy storage using hydrogen How does that compare to diverting the excess electricity to fueling of vehicles A modified version of the US Department of Energyrsquos Fuel Cell Power Model (FCPower 2012) was used to perform this analysis

The next section describes the building profile and PV systems followed by the load-leveling and vehicle-refueling systems Section 3 shows cost analysis results for the load-leveling and vehicle-refueling systems Section 4 offers conclusions and Section 5 includes suggestions for future work

1

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 35: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

2 System Descriptions and Energy Flows The following subsections detail the characteristics of the building profile used in both the load-leveling and vehicle-refueling scenarios the electrolyzer fuel cell and PV systems used in the scenarios and the load-leveling and vehicle refueling systems themselves

21 Building Profile and PV Systems The same building profile was used for the load-leveling and vehicle-refueling scenarios The hourly load profile for a small hotel in Boulder Colorado was used as a surrogate for a community of 100 residences (Field et al 2010 National Renewable Energy Laboratory [NREL] 2009) The hotel load profile is expected to be similar to the load profile for a residence because of similar use patterns most people get up and ready for work in the morning and then return later in the afternoon This use pattern results in a peak in electricity demand between 600 am and 1000 am and another between 500 pm and 1000 pm Because the hotel load with an average demand of about 65 kW is larger than would be expected for 10ndash15 single family residences (with an average demand of 1ndash2 kW per household) the analysis was scaled up in size However the equipment costs are scaled linearly and the energy flow relationships are the same as for a smaller system Some characteristics of the hotel building load profile are listed in Table 1 Figure 1 plots the electricity demand for the hotel during a typical day in July

Table 1 Key Characteristics of the Boulder Hotel Building Load Profile

Building Load Statistics

Demand maximum (kW) 1253

Demand minimum (kW) 284

Demand average (kW) 654

Demand std dev (kW) 228

Demand total (kWhyear) 572518

2

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 36: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Figure 1 Building electricity demand profile selected day in July

The same PV systems were used for the load-leveling and vehicle-refueling scenarios (Table 2) The three PV systems range in size from about half the yearly building load to almost three times the building load The capacity factor for the PV systems is 181 NRELrsquos hourly solar resource data for Boulder Colorado (NREL 2009) was imported into the FCPower model for use in the simulations

Table 2 Key PV System Performance Parameters

PV System Peak Rated Yearly Approximate Size Output Output Percent of (m2) (kW) (kWh) Building Load

1200 183 286704 50

4000 611 955681 170

7000 1069 1672442 290

22 Load-Leveling System Figure 2 shows a schematic representation of the equipment and building layout for the load-leveling system Electricity from the PV panels is first used to satisfy the building demand (100 houses approximated by the hotel profile described previously) directly If the output from the

1 The capacity factor is calculated as the actual PV output (kWh) divided by the potential output if the PV panels were producing at their maximum power for 24 hours a day

3

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 37: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

PV system is higher than the building demand at that time the electricity is routed to the electrolyzer where it is used to produce hydrogen for storage During periods when the demand is high but PV output is low for example in the evening the stored hydrogen is used in the fuel cell to produce electricity for the building demand Any additional building demand is met using electricity from the grid On rare occasions the storage system may be full and excess electricity from the PV system is routed to the transformer and fed onto the grid In this scenario the fuel cell output is only used to satisfy the building demand and is never routed to the grid

Figure 2 Schematic diagram of equipment and energy flows for the load-leveling system

Seasonal variation in the PV system output has a marked effect on the sizing of the storage systems for the three PV system sizes Seasonal fluctuations in PV outputH2 produced by the electrolysis system can be accommodated for the 1200- and 4000-m2 systems However sizing the hydrogen production and storage system to accommodate seasonal variations in hydrogen production for the 7000-m2 PV system is not practical Therefore for the 7000-m2 system both the electrolyzer and hydrogen storage system are scaled down and more electricity is routed to the grid

For the 1200-m2 PV system the PV electrical output exceeds the building load during certain times of the day but the total daily output never exceeds the total daily load Therefore for the 1200-m2 system the storage system cycles daily and electricity is never sold back to the grid In contrast for the 4000- and 7000-m2 systems the daily PV output often exceeds the daily load so multi-day storage is needed For the 4000-m2 system 780 kg (~14600 kWh) which is equivalent to approximately 9 days of storage accommodates the seasonal variation in PV output and no electricity is sold back to the grid For the 7000-m2 system it is not feasible to fully account for seasonal variation in PV output with storage Therefore the storage system for

4

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 38: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

the 7000-m2 system was sized to approximately 4 days of storage and a considerable amount of electricity is sold to the grid during periods when the storage system is full

Table 3 shows the efficiencies of the electrolyzer fuel cell and compressor modeled in the system

Table 3 Efficiencies of the Load-Leveling Systemrsquos Electrolyzer Fuel Cell and Compressor

Model Parameter Units Value

Electrolyzer efficiency HHV 78ndash87a

Fuel cell efficiency LHV 53ndash58b

Compressor system efficiency HHV 92 a 66ndash74 lower heating value (LHV) Electrolyzer efficiency decreases with increasing hydrogen output The electrolyzers for the 1200- and 4000-m2 systems operate on average at about 40 of their rated power The electrolyzer for the 7000-m2 system operates at about 84 of its rated power b Fuel cell efficiency decreases with increasing electricity output For the three systems the fuel cell capacity factor ranges from 89 (1200-m2 system) to 45 (7000-m2 system) HHV = higher heating value

Figure 3 shows the energy flows for this system (with 1200 m2 of PV) during a day in October On this day there is sufficient PV generation to carry the load without using the grid and produce hydrogen for storage (purple ldquoXrdquos) from about 1000 am to 500 pm Sufficient hydrogen is stored during the day to carry part of the load in the evening however no hydrogen remains to produce electricity during the early morning hours As Figure 4 shows for the scenario with 1200 m2 of PV there is a wide variation in the amount of hydrogen produced during various times of the year During periods of high demand (eg the day in July) or low solar output (eg the day in January) very little hydrogen is produced

5

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 39: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Pow

er [k

W]

180

160

140

120

100

80

60

40

20

0 0

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

Electricity Sold

Total Demand

5 10 15 Hour of the Day [hr]

20

Figure 3 Boulder hotel electricity demand PV generation and storage system energy flows for a typical day in October (1200 m2 PV)

Day in January Day in April 180 180

160 160

140 140

120 120

Pow

er [k

W]

Pow

er [k

W]

100 100

80 80

60 60

40 40

20 20

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

160

180

Day in July

160

180

Day in October

Electricity from Grid

100

120

140

100

120

140 Electricity from PV

Electricity from H2 FC

80 80 H2 Produced

60 60

40 40 Electricity Sold

0

20

0 5 10 15 Hour of the Day [hr]

20 0

20

0 5 10 15 Hour of the Day [hr]

20

Total Demand

Figure 4 Seasonal variation with 1200 m2 of PV four selected days

6

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 40: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

With 1200 m2 of PV installed there is insufficient hydrogen productionstorage to completely offset morning and evening peak power draws from the grid especially during the summer when demand is higher However peak draws from the grid are reduced 10ndash15 in the afternoon and evening peak period for part of the year The peak output from the PV system is usually between 120 and 160 kW which typically occurs when the building load is around the average of 65 kW Without the storage system the transformer occasionally would need to accommodate the difference in output of up to 100 kW of electricity being fed onto the grid The storage system completely eliminates this energy flow Table 4 summarizes the energy flows for the 1200 m2 PVenergy storage system Figure 5 and Figure 6 show energy flows on various days for the 4000- and 7000-m2 PV systems

Table 4 Summary of Energy Flows for 1200-m2 PVEnergy Storage System

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

PV system 1200 m2 (~ 183 kW peak rated output)

286704 kWh 18 50 (total) 34 (direct supply)

Electrolyzer 127 kW input 1833 kg 38 [1904] mdash

Hydrogen storage 16 kg ~ 1 cycle per day mdash mdash

Hydrogen fuel cell 15 kW output 32094 kWh 89 [2402] 6

Grid mdash 348771 kWh mdash 61

Electricity sold mdash 0 kWh mdash mdash

7

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 41: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

Pow

er [k

W]

600

Day in January 600

Day in April

500 500

400 400

300 300

200 200

100 100

0 0 5 10 15

Hour of the Day [hr] 20

0 0 5 10 15

Hour of the Day [hr] 20

300

400

500

600

Day in July

300

400

500

600

Day in October

Electricity from Grid

Electricity from PV

Electricity from H2 FC

H2 Produced

0

100

200

0 5 10 15 Hour of the Day [hr]

20 0

100

200

0 5 10 15 Hour of the Day [hr]

20

Electricity Sold

Total Demand

Figure 5 Seasonal variation with 4000 m2 of PV

1000

Day in January 1000

Day in April

900 900

800 800

700 700

0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20 0

100

200

300

400

500

600

0 5 10 15 Hour of the Day [hr]

20

Day in July Day in October 1000 1000

900 900 Electricity from Grid

800 800 Electricity from

700 700 PV

600 600 Electricity from H2 FC

500 500 H2 Produced

400 400

300 300 Electricity Sold

200 200 Total Demand

100 100 0 0

0 5 10 15 20 0 5 10 15 20 Hour of the Day [hr] Hour of the Day [hr]

Figure 6 Seasonal variation with 7000 m2 of PV

8

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 42: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Table 5 summarizes the energy flows for the 4000-m2 system The total yearly PV output is 167 of the building yearly load However only about 48 of the PV output occurs at times when it can directly supply the building load For this configuration there is insufficient hydrogen productionstorage to offset morning and evening peak power draws from the grid completely especially during the summer when demand is higher However peak draws from the grid are reduced 50ndash75 in the afternoon and evening peak period for most of the year

Table 5 Summary of Energy Flows for 4000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 4000 m2 (~ 611 kW peak rated output)

955681 kWh 18 167 (total) 48 (direct supply)

Electrolyzer 578 kW input 14797 kg 39 [3265] mdash

Variable days of Hydrogen storage 780 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 100 kW output 277770 kWh 55 [5065] 47

Grid mdash 25995 kWh mdash 4

Electricity sold mdash 0 kWh mdash mdash

Table 6 summarizes the energy flows for the 7000-m2 system The total yearly PV output is 292 of the building yearly load However only about 51 of the building load can be supplied by the PV system directly In this scenario there is sufficient hydrogen production and storage capacity to supply 42 of the building load using the hydrogen fuel cell The hydrogen fuel cell for the 7000-m2 system supplies less of the building load than the fuel cell for the 4000-m2

system because storage for the 7000-m2 system is smaller than for the 4000-m2 system and thus provides less seasonal storage than for the 4000-m2 system The peak output from the PV system is about 1069 kW which typically occurs when the building load is 60ndash100 kW Without the storage system the transformer would need to accommodate the difference in output of close to 1000 kW of electricity being fed onto the grid The storage system reduces this energy flow by diverting some of the excess electricity to the electrolyzer In the configuration analyzed the electrolyzer reduces peak electricity flow to the grid by 220 kW the input electricity capacity of the electrolyzer For the 7000-m2 PV system scenario not all peaks in energy flow to the grid are eliminated In this scenario there are several occasions when the energy flow to the grid exceeds 700 kW

9

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 43: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Table 6 Summary of Energy Flows for 7000-m2 PV System

EquipmentSystem

Capacity Factor ( of Max Output during Operation [hyr])

Percent of Building Load (Building + Compressor)

System Size Yearly Output

PV system 7000 m2 (~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer 221 kW input 12757 kg 84 [3619] mdash

Variable days of Hydrogen storage 325 kg storage depending mdash mdash

on the season

Hydrogen fuel cell 125 kW output 246321 kWh 45 [4388] 42

Grid mdash 38405 kWh mdash 7

Electricity sold mdash 729410 kWh mdash 44 of PV output

23 Vehicle-Refueling System The vehicle-refueling system is similar to the load-leveling system except that vehicles absorb the excess energy instead of buildings and no electricity is sold back to the grid The vehicle refueling serves the purpose of load leveling eliminating large electricity fluctuations and reverse power flow from the PV system through the transformer The modeled community consists of about 100 houses (approximated with the hotel profile described previously) with corresponding vehicle-refueling demand Electricity from the PV system supplies the building load when PV output is less than the building load the grid supplies the difference The transformer and distribution lines have enough capacity to supply the peak building load Figure 7 shows a schematic of the system

The PV system also produces all fuel for the vehicles (ie the grid does not supply electricity for vehicle fuel) Two types of vehicle refueling systems are compared in this analysis One uses electrolytic hydrogen production for hydrogen-powered vehicles (Figure 8) and the other uses battery storage for charging plug-in electric vehicles (Figure 9)

The vehicle-refueling cost analysis was performed for two cases

bull Case 1mdashAll PV electricity output in excess of the building load is used for vehicle refueling

bull Case 2mdashAll PV electricity output before noon is used for vehicle refueling in addition to all PV output in excess of the building load

Figure 10 show schematics of the PV electricity output used for vehicle refueling in Case 1 and Case 2

10

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 44: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

In the hydrogen vehicle-refueling analysis an electrolyzer is sized to accommodate the maximum electricity production used to generate hydrogen2 The compressor is sized to the peak hourly hydrogen flow rate The storage system is assumed to cycle fully each day (ie there is no multi-day storage) The amount of hydrogen storage needed was calculated by running the model with very large daily hydrogen demand to ensure that the analysis simulates daily cycling of the storage system The storage volume needed was then set at the maximum amount of hydrogen in storage at any time during the year (for the very high demand case) plus 50 or a minimum value for a full tank refueling based on the assumed cascade system volume of 65 kg This results in about 75 kg of storage for the smallest system (1200-m2 PV Case 1) which produces only an average of approximately 5 kgday A relatively large excess storage was assumed for the larger systems to account for the large daily fluctuations in PV output and the fact that actual hydrogen refueling is likely to be less uniform than modeled The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large the average monthly hydrogen production for the 4000-m2 system is ~1200 kgmonth with a standard deviation of ~140 kgmonth However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) so in reality it might be necessary to refuel vehicles offsite occasionally during part of the summer There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them

One 350-bar hydrogen dispenser with two hoses is used for daily hydrogen production ranging from only about 5 kgday for the 1200-m2 Case 1 system to about 90 kgday for the 7000-m2

Case 2 system It is expected that hydrogen fuel cell vehicles used primarily for commuting would be refueled about once per week Although most vehicle manufacturers are planning for 700-bar refueling 350-bar dispensing is assumed for this analysis Vehicles designed for the higher pressure are capable of being refueled at lower pressure (although the tank cannot be completely filled) and 700-bar dispensers are considerably more complex and expensive than 350-bar dispensers The additional expense was not felt to be justified for the low throughput of hydrogen and community-based refueling envisioned in this study

The alternative vehicle-refueling system uses electricity to charge a zinc-air storage battery system consisting of one or more batteries that may be located together or distributed through the community The batteries are used to store energy for a brief period (less than 1 day) so that battery-electric vehicles can be charged in the evening and overnight The battery system is sized to accommodate the maximum difference between the PV daily output (kWh) and the building load plus 50 in order to have enough capacity to charge several vehicles (for the smaller system cases) and to more closely match the hydrogen systems The battery system is assumed to discharge fully each day (ie there is no multi-day storage) and each vehicle is refueled with a home-based Level 1 (120V) charging unit (comparable to a 350-bar hydrogen system) The zinc-

2 In this analysis the maximum electricity production used to generate hydrogen is calculated for two cases In Case 1 it is the difference between the PV output and the building load and in Case 2 it is the amount in Case 1 plus all PV electricity generated before noon

11

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 45: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

air batteryvehicle charging system is assumed to have an overall electrical efficiency of 733

The purpose of modeling this battery-electric system is to provide a reasonable contrast with the hydrogen-fuel cell system rather than to model a real-world battery-electric system in detail

The hydrogen and electric vehicles are assumed to have identical charging profiles every day of the year and all vehicles are refueled between 400 pm and 900 pm Although this is a more realistic profile for hydrogen refueling than for electric vehicle nighttime charging the differences in profiles do not affect the analysis because neither type of vehicle would be refueled at a time when a significant amount of PV electricity could be used directly for vehicle fueling In all cases the amount of fuel produced is determined by how much of the PV output can be directed to the battery or electrolyzer Therefore the same amount of electricity is used for vehicle refueling whether the vehicles are powered by hydrogen or electricity the battery-electric system simply powers more vehicles because of its higher efficiency4 Figure 11 shows the vehicular hydrogenelectricity demand profile along with the building electricity demand profile Figure 12 shows all the system energy flows Table 7 and Table 8 show the energy flows for Cases 1 and 2

Figure 7 Schematic diagram of equipment and energy flows for the vehicle-refueling system There is no energy flow from the vehicle-refueling system to the building

3 Zinc-air battery round trip efficiency was assumed to be slightly less than the value reported by Rastler (2010) to account for losses in home charging of vehicles4 The all-electric vehicles are based on the Nissan Leaf with a 100-mile all-electric range and driven 12000 miles per year

12

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 46: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Figure 8 Detail of hydrogen vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 9 Detail of alternative (battery) vehicle-refueling configuration There is no energy flow from the vehicle-refueling system to the building

Figure 10 PV electricity output used for vehicle refueling in Case 1 (left) and Case 2 (right)

13

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 47: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Figure 11 Example vehicular hydrogenelectricity demand profile (4000-m2 PV system)

Figure 12 Building electricity demand vehicular hydrogenelectricity demand PV and grid electricity supply and hydrogen produced (or electricity to storage) during a typical day in July

(4000-m2 PV system)mdashHydrogen Case 1

14

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 48: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Table 7 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 1

EquipmentSystem System Size Yearly Output

Capacity Factor ( of Max Output during Operation [hyr])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 35 (direct output) supply)

Electrolyzer (H2 system) 127 kW input 1804 kg 36 [1904] mdash Hydrogen storage (H 2 system) 75 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 61726 kWh mdash mdash

Battery storage (battery system) 589 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 370486 kWh mdash 65 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 47 (direct

output) supply) Electrolyzer (H 2 system) 560 kW input 14564 kg 40 [3265] mdash Hydrogen storage (H 2 system) 85 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 500755 kWh mdash mdash

Battery storage (battery system) 2954 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 303744 kWh mdash 53 7000-m2 PV System

PV system

7000 m2

(~ 1069 kW peak rated output)

1672442 kWh 18 292 (total) 51 (direct supply)

Electrolyzer (H 2 system) 1013 kW input 29274 kg 39 [3669] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per

day mdash mdash

Vehicle electricity (battery system) mdash 1008212 kWh mdash mdash

Battery storage (battery system) 5530 kWh ~ 1 cycle per

day mdash mdash

Grid mdash 283082 kWh mdash 49

15

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 49: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Table 8 Summary of Energy Flows for Vehicle-Refueling System (Hydrogen and BatteryElectric Systems)mdashCase 2

EquipmentSystem System Size Yearly Output

Capacity Factor ( of max output during operation [hrsyear])

1200-m2 PV System

1200 m2 (~ 183 50 (total)

Percent of Building Load

PV system kW peak rated 286704 kWh 18 21 (direct output) supply)

Electrolyzer (H 2 system) 105 kW input 3541 kg 36 [3137] mdash Hydrogen storage (H 2 system) 90 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 121936 kWh mdash mdash

Battery storage (battery system) 2493 kWh ~ 1 cycle per day mdash mdash

Grid mdash 453078 kWh mdash 79 4000-m2 PV System

4000 m2 (~ 611 167 (total) PV system kW peak rated 955681 kWh 18 27 (direct

output) supply) Electrolyzer (H 2 system) 554 kW input 16985 kg 38 [3907] mdash Hydrogen storage (H 2 system) 95 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 585475 kWh mdash mdash

Battery storage (battery system) 3305 kWh ~ 1 cycle per day mdash mdash

Grid mdash 419957 kWh mdash 73 7000-m2 PV System

7000 m2 (~ 1069 292 (total) PV system kW peak rated 1672442 kWh 18 28 (direct

output) supply) Electrolyzer (H 2 system) 1013 kW input 31898 kg 38 [4110] mdash Hydrogen storage (H 2 system) 165 kg ~ 1 cycle per day mdash mdash

Vehicle electricity (battery system) mdash 1095214 kWh mdash mdash

Battery storage (battery system) 5914 kWh ~ 1 cycle per day mdash mdash

Grid mdash 410195 kWh mdash 72

16

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 50: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

24 Comparison of Load Leveling and Vehicle-Refueling Systems The general strategy employed for the load-leveling cases was to minimize and smooth the electricity demand that must be met by the grid In the vehicle refueling cases the strategy focused on producing vehicle fuel (either hydrogen or electricity) exclusively from the renewable resource in the most cost-effective manner Figure 13 illustrates the effect of each strategy on the amount of grid electricity purchased monthly for the 4000-m2 case Note that some grid electricity is purchased almost every month for the storage scenario case especially during the winter even though the solar panels produce almost double the building load overall and produce nearly 50 more electricity than the building load during the winter This occurs because the storage system which is large enough to accommodate seasonal variations in PV system output (see Figure 14) for the energy storage scenario gradually empties in the fall as PV daily electricity production decreases During the winter only electricity produced that day is available for electricity generation from the hydrogen fuel cell in the evening and overnight On a cloudy day when little electricity is generated by the PV panels there is no ldquocushionrdquo of hydrogen in storage and electricity must be purchased For the two hydrogen vehicle cases the electricity used to generate hydrogen is permanently removed from electrical system for the building and grid There is no electricity generation from the storage system The grid electricity needed to satisfy the building load is reduced because some electricity from the PV system can be directly routed to the building Less grid electricity is required for hydrogen vehicle Case 1 (purple line in Figure 13) than for hydrogen vehicle Case 2 (green line in Figure 13) because the electricity from the solar panels is routed to the building for a longer period each day in Case 1 In all cases the grid demand is reduced and smoothed as compared to the building demand alone

17

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 51: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Thou

sand

s of

kW

hm

onth

100

90

80

70

60

50

40

30

20

10

-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar PanelsElectricity From Grid - energy storage scenarioElectricity From Grid - vehicle case 1Electricity from Grid - vehicle case 2Building Electricity Demand

Figure 13 Monthly PV system output and electricity from the gridmdash4000-m2 PV system

18

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 52: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Th

ousa

nds

of k

Wh

mon

th 100 1000

80

60

40

20

800

600

400

200

kg H

ydro

gen

- -Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Electricity From Solar Panels (Th kWh)Monthly Maximum Hydrogen in Storage - storage scenarioHydrogen Storage Tank Capacity - storage scenarioMonthly Maximum Hydrogen in Storage H2 Vehicle Case 1Hydrogen Storage Tank Capacity - H2 Vehicle Case 1Monthly Maximum Hydrogen in Storage H2 Vehicle Case 2Hydrogen Storage Tank Capacity - H2 Vehicle Case 2

Figure 14 Monthly maximum hydrogen in storage for various scenariosmdash4000-m2 PV system

The smoothing effect of energy storage and diversion of excess PV production to vehicles is illustrated in Figure 15 which plots the maximum daily fluctuations in PV output and grid interactions for the 4000-m2 PV system case Electricity that would have been routed to the grid in the absence of a storage or vehicle refueling system is shown in orange With no storage or vehicle refueling system the maximum delta within a single day between drawing electricity from the grid and routing electricity to the grid is 633 kW With storage the maximum is 103 kW and with either of the hydrogen vehicle refueling systems the maximum is 131 kW

Monthly PV output and electricity from the grid for the 7000-m2 case is shown in Figure 16 Monthly maximum hydrogen in storage is shown in Figure 17

19

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 53: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Figure 15 Maximum daily fluctuations in PV system output and grid interactionsmdash4000-m2 PV system

20

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 54: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Figure 16 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

21

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 55: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Figure 17 Monthly PV system output and electricity from the gridmdash7000-m2 PV system

3 Cost Analysis Results A modified version of the NREL Fuel Cell Power (FCPower [2012]) spreadsheet model was used as the basis for the economic analyses for the community energy storage scenarios The FCPower model incorporates the lifecycle discounted cash flow methodology developed for the H2A hydrogen production model (H2A Production Model 2012) A detailed explanation of the economic methodology is provided in an NREL technical manual for the economic evaluation of energy efficiency and renewable energy projects (Short et al 1995) Cash flows including revenues variable and fixed operating expenses (fuel labor interest on debt taxes etc) capital expenditures and repayment of principal are aggregated yearly over the lifetime of the project This methodology captures the time dependence of costs and revenues over the life of the project For example the methodology accurately captures costs associated with replacement of equipment components at specific times in the future All per kWh or per kg costs presented are levelized costs including all direct and indirect costs and operating expenses over the life of the system

An initial analysis of the PV system alone (without a storage system) was performed to establish a baseline cost for the PV-generated electricity Because the PV system capital costs are assumed to be the same on a $watt basis for all three system sizes the levelized cost of electricity (LCOE) of electricity generated over the 30-year assumed life of the system is the same 15centkWh for all of the systems This value was used as the ldquoselling pricerdquo for electricity routed directly to the building In this way the cost of the solar system was apportioned between the building and the storagevehicle fuel production system The apportioned cost of the solar system

22

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 56: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

is included in the LCOE results of the storage or fuel production cases unless specifically stated otherwise

Table 9 lists the equipment and associated costs for the community energy storage scenarios All equipment costs are assumed to scale linearly within the size ranges of the analysis except control and safety equipment and electrical upgrades for the hydrogen systems which are assumed to be fixed costs Table 10 lists the financial parameters used in the analysis

Table 9 Equipment Costs for Load-Leveling and Vehicle-Refueling Scenarios

Equipment Costs $2010

Unit Equipment Size Range

Cost Unit

Cost (Installed) [replacement refurbishment of installed costinterval]

Installed Cost Reference

Electrolyzer kW 105 ndash 1013 $kW input

~$600 [2510 years]

HTAC (2011) ($750 including all balance of plant and indirect costs DOE Independent Review [2009] installed cost ~$540kW [2010])

Hydrogen storage tanks (load leveling) kg 16 ndash 780 $kg H 2 ~$1350

H2A (2012) Installed cost for low pressure storage

Hydrogen storage tanks (vehicle refueling) kg 75 ndash 165 $kg H 2

~$1350 ndash $1400

H2A (2012) Installed cost for low pressure and cascade storage

Hydrogen storage compressor + balance of plant installed (load leveling)

kW 4 ndash 20 $kW $11000 ndash $7200 [10010 years]

H2A (2012)

Hydrogen storage compressor (vehicle refueling) kW 5 ndash 44 $kW $10400 ndash

$2600 H2A (2012)

Hydrogen fuel cell kW 15 ndash 125 $kW ~$950 [3015 years]

HTAC (2011)

Hydrogen dispenser mdash 1 $unit ~$64000 H2A (2012)

Zinc-air battery kWh 600 ndash 6000 $kWh $315

Rastler (2010) Based on max kWh in ldquostoragerdquo at any time

Electrical upgrades and charging stations mdash mdash $ 5 of installed

battery cost HTAC (2011)

23

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 57: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Equipment Costs $2010

Cost (Installed)

Unit Equipment Size Range

Cost Unit

[replacement refurbishment of installed

Installed Cost Reference

costinterval]

HTAC (2011) (Barbose et al

PV system kW 180 ndash 1070 $kW installed

~$2500 [2012] installed cost for gt100kW residential or commercial systems ~$475W $2011)

Indirect Costs Site preparation engineering contingency permitting

of installed capital cost

28 H2A (2012)

Energy Cost

Levelized cost of grid electricity for building supply without a PVstorage $012 $kWh system

Revenue for electricity sold $012 $kWh Notes and assumptions

1 Vehicle-refueling storage systems include low-pressure tanks (~$1000kg) and one cascade storage system (~$1700kg 65 kg H 2 in a three-tank system)

2 For the vehicle-refueling systems one primary compressor is assumed for both low-pressure and cascade storage ~24 kW compressor power(kgh) H 2 flow rate

3 The compressor system assumes a 200 psi input pressure and a 3600 psi output pressure 4 Model parameters are based on a 2020 planning timeframe 5 Model parameters assume a manufacturing scale of 1000 systems per year

Table 10 Financial Analysis Parameters

Model Parameter Units Value Insurance of initial direct capital 2

Annual OampM rate of initial direct capital 2

Inflation rate 2

Total tax rate 0

Reference dollar year for costs 2010

Financing Debt financing 15 years 100

Interest rate on debt 8

Real after-tax rate of return required 0

System Life years 30 Notes and assumptions

1 Annual OampM costs are calculated as a percent of initial capital and include the periodic replacement of components Compressor system cost is scaled on the hydrogen flow rate in kgday of flow

24

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 58: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

31 Load Leveling The LCOE from the storage system for each of the scenarios is listed in Table 11 The total direct capital cost and LCOE for the system including the PV system cost are calculations of the total cost of energy supplied by the combination of the PV system directly supplying electricity to the building plus the cost of routing some of the electricity through the storage system Credit is taken for any electricity that is sold back to the grid Electricity sold back to the grid is assumed to be sold at 12centkWh which is the same price as supplementary electricity purchased from the grid For the total direct capital cost and LCOE without the PV system costs the costs presented are for the storage system only and the LCOE applies only to the electricity output from the storage system In this case electricity from the PV system to the electrolyzer is assumed to be ldquofreerdquo and the costs presented represent only the cost of purchasing the equipment and non-energy operating costs for the storage system If the electricity that is routed to the storage system could be sold for 6centkWh instead the cost of electricity to the electrolyzer could be assumed to be worth 6centkWh Recalculating the costs assuming that electricity routed to the electrolyzer costs 6centkWh and using the 1200-m2 PV system case as an example illustrates the effect of the additional cost For the 1200-m2 PV case about 32000 kWh of electricity are produced from the storage system At zero cost for the electricity supply to the electrolyzer the cost of output electricity is about $109 per kWh This cost increases to $126kWh if the input electricity is 6centkWh The output electricity cost is highly sensitive to the cost of input electricity because of the inefficiency of the electrolyzerstoragehydrogen fuel cell system In this case the round trip efficiency of the storage system is between 35 and 40 resulting in about 25 kWh electricity used for every kWh of electricity produced from the fuel cell

The LCOE for the full systems increases for the larger systems because of the high PV system costs but variations in equipment utilization make the 7000-m2 system overall slightly lower cost than the 4000-m2 system The 7000-m2 system has better utilization of the electrolyzer than the 4000-m2 system 3619 hoursyear operating at an average of 84 of peak output for the 7000-m2 system and 3265 hoursyear operating at an average of 39 of peak output for the 4000-m2 system However the fuel cell utilization is better for the 4000-m2 system than for the 7000-m2 system (5065 hoursyear at 55 of peak [4000-m2 system] vs 4388 hoursyear at 45 of peak [7000-m2 system]) In the case of the 7000-m2 system electricity produced by the PV system must be sold to the grid at a lower cost than the cost of generating it (12centkWh vs 15centkWh respectively)

In contrast focusing only on the cost of storing electricity shows the opposite trend The storage system is used much more effectively for higher penetrations of PV so the costs of stored electricity decrease Careful attention must be paid to matching the storage system to the particular application There are many variables including the electrolyzer size storage system size and fuel cell size that must be considered together with the building load characteristics and PV system output to optimize the system to achieve the goals for the application

25

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 59: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Table 11 Load-Leveling System Costs with and without PV Costs Included

Scenario

Total Direct Capital Cost Including PV System ($000)

LCOE of Electricity (Direct Supply + Electricity from Storage) (centkWh)

Total Direct Capital Cost without PV System ($000)

LCOE of Stored Electricity (centkWh)a

1200-m2 PVstorage system $727 33 $271 109

4000-m2 PVstorage system $2958 57 $1438 62

7000-m2 PVstorage system $3393 45 $733 36 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery

production storage and delivery and replacement and operating expenses over the life of the system

The equipment cost breakdown for scenarios analyzed is shown in Figure 18 The balance-of-plant components including electrical upgrades and control and safety equipment are included in the category labeled ldquoHydrogen Compressorrdquo In these scenarios the hydrogen storage system (compressor and storage tanks) comprises more than 50 of the non-PV system costs The electrolyzer cost is higher than the fuel cell cost in all cases even though the electrolyzer is lower cost than the hydrogen fuel cell on a per-kW basis This occurs because the electrolyzer must be sized to capture electricity produced by the PV system during a relatively short period in the middle of the day when PV output peaks and demand is relatively low In contrast the hydrogen fuel cell can be sized to slowly feed electricity back to the building load during a relatively long period when demand is steady and there is no PV output The results of an analysis of the sensitivity of the 4000-m2 PV system case output electricity cost to equipment cost is presented in Figure 19

26

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 60: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

$76500 28

$16592 6 $166095 62

$11430 4

1200 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$346500 24

$808860 56

$206684 15 $76200 5 4000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

$126000 17

$337025 46

$174729 24

$95250 13 7000 m2 PV

Electrolyzer

Hydrogen storage tanks

Hydrogen compressor

Hydrogen fuel cell

Figure 18 Capital cost breakdown for hydrogen storage systems for 1200-m2 PV system (top) 4000-m2 PV system (center) and 7000-m2 PV system (bottom)

27

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 61: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Sensitivity Analysis Hydrogen FC = 100 kW

Electrolyzer = 578 kWinput H2 Storage = 780 kg

Hydrogen storage cost [1037 $kg plusmn 50]

Electrolyzer installed cost [750 $kWinput plusmn 50]

Hydrogen fuel cell installed cost [950 $kW plusmn 50]

$030 $040 $050 $060 $070 $080 $090 $100 LCOE of Electricity from Hydrogen Fuel Cell ($kWh)

Figure 19 Sensitivity of output electricity LCOE to equipment cost for the 4000-m2 PV system case

32 Vehicle Refueling Figure 20 shows the total system capital costs for Case 1 The PV system dominates the capital costs followed for the larger systems by the electrolyzer Figure 21 shows the capital cost breakdown for the hydrogen system only The electrolyzer accounts for 16 (1200-m2 PV system) 40 (4000-m2 system) and 45 (7000-m2 system) of the hydrogen system costs For the smallest PV system hydrogen storage accounts for the largest capital cost (22)

Figure 22 compares the hydrogen system capital costs of Case 1 versus Case 2 For the smallest PV system Case 2 capital costs are substantially higher primarily owing to higher hydrogen storage and electrolysis costs For this system 96 more hydrogen is produced annually in Case 2 than in Case 1 because the extra PV output used to produce hydrogen before noon in Case 2 accounts for almost as much total hydrogen production as the PV output in excess of the building load Thus the electrolyzer and hydrogen storage must be substantially larger in Case 2 than in Case 1 to accommodate the higher hydrogen production rates and extra hydrogen storage As the PV system size increases the contribution of the extra morning hydrogen production becomes smaller For the 4000-m2 system Case 2 produces only 17 more hydrogen annually than Case 1 and Case 2 capital costs are only slightly higher For the 7000-m2 system Case 2 produces only 9 more than Case 1 and the capital costs are almost identical

Table 12 summarizes the Case 1 and Case 2 cost results for both the hydrogen and battery-electric vehicle refueling systems On a per-mile basis electric storagerefueling is 30 to 60 of the cost of hydrogen storagerefueling The largest differential is for the 1200-m2 PV system

28

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 62: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

for which the hydrogen capital cost is about twice as high as the battery-electric capital cost (Figure 23) For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles versus 556 kWh100 miles for fuel cell electric vehicle (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

In both cases for the hydrogen and electric systems diverting more electricity from the PV system for vehicle refueling improves the economics this effect is more pronounced for the hydrogen system The best hydrogen cost is from the Case 2 7000-m2 PV system In this scenario about 90 of the PV output goes to hydrogen production or battery storage and the PV system supplies 28 of the building load The hydrogen system produces about 32000 kg of hydrogen per year (about 90 kgday) enough to supply 159 vehicles at a cost of $11kg or 19centmile

Figure 20 Total PV-hydrogen system capital costs (Case 1)

29

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 63: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

$-

$200

$400

$600

$800

$1000

$1200

$1400

$1600

1200 m2 (~150 kW max) 4000 m2 (~600 kW max) 7000 m2 (~1070 kW max)

Thou

sand

s

PV Array Size

Hydrogen Production and Dispensing System Cost Distribution (Excess PV Electricity)

Indirect cost (site preparation engineering contingency)

Hydrogen dispensers

Hydrogen system balance of plant

Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

Figure 21 Hydrogen system capital costs (Case 1)

00

02

04

06

08

10

12

14

16

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

$Mill

ions

Indirect cost (site preparation engineering contingency) Hydrogen dispensers

Hydrogen system balance of plant Hydrogen storage compressor

Hydrogen storage tanks

Electrolyzer

1200 m2 PV 4000 m2 PV 7000 m2 PV

Figure 22 Comparison of hydrogen system capital costs between Case 1 and Case 2

30

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 64: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

$-

$500

$1000

$1500

$2000

$2500

FCEV EV FCEV EV FCEV EV

Tota

l Cap

ital C

ost (

$Tho

usan

ds)

1200 m2 PV 4000 m2 PV 7000 m2 PV

EV - Indirect cost (site preparation engineering contingency) EV - Electrical Upgrades

EV - ZnAir Battery

FCEV - Indirect cost (site preparation engineering contingency) FCEV - Hydrogen dispensers

FCEV - Hydrogen system balance of plant

FCEV - Hydrogen storage compressor

FCEV - Hydrogen storage tanks

FCEV - Electrolyzer

Figure 23 Capital costs of hydrogen (fuel cell electric vehicle [FCEV]) and battery-electric (electric vehicle [EV]) systems Case 1

31

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 65: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

Table 12 Summary of Vehicle Refueling Cost Results

Hydrogen for Fuel Cell Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

Production (kg H 2yr)

Vehicles Served

H2 LCOE H2 Cost

(centmi) Production (kg H 2yr)

Vehicles Served

H2 LCOE

H2 Cost

1200 1804 9 34 56 3541 17 22 38

4000 14564 72 13 22 16985 84 12 21

7000 29274 146 12 20 31898 159 11 19

PV Size (m2) ($kg) (centmi) ($kg)

Electricity for Battery-Electric Vehiclesa

Case 1 (Excess Electricity) Case 2 (Excess Electricity + Morning Output)

PV Size (m2)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

Production (kWhyr)

Vehicles Served

Elec LCOE ($kWh)

Elec Cost (centmi)

1200 61726 17 057 17 121936 35 045 13

4000 500755 143 041 12 585475 168 040 12

7000 1008212 289 039 11 1100877 316 039 11 a Levelized costs include all direct and indirect costs for the apportioned cost of the PV system hydrogenbattery production storage and delivery and replacement and operating expenses over the life of the system For the 4000- and 7000-m2 PV systems the hydrogen capital costs are lower than the battery-electric capital costs however the higher efficiency of the battery-electric vehicle system (29 kWh100 miles for electric vehicles vs 556 kWh100 miles for fuel cell electric vehicles (DOE 2013) still results in a lower per-mile cost for the battery-electric vehicle system

4 Conclusions These simple analyses show the potential application of hydrogen production storage and electricity-generation technologies for community load leveling and vehicle refueling Although the results do not show a clear advantage for hydrogen load leveling or vehicle refueling the analysis does indicate that the economics could be improved especially for larger systems

The primary goal of the load-leveling scenario was to evaluate storage systems for load leveling under the constraint of a limited gridtransformer size The systems were sized to meet this goal but not fully optimized for cost The results of the analyses indicate that storage systems are more cost effective for higher penetrations of renewable electricity generation In all cases however the electricity produced by the storage system was more expensive than grid electricity Therefore the storage system must provide benefits in addition to cost such as relieving grid congestion andor providing backup power in order to be cost effective A sensitivity analysis for equipment costs for the 4000-m2 energy storage case revealed that the LCOE of output electricity was most sensitive to the hydrogen storage tank cost (Figure 19) However the overall system cost is also highly dependent on the configuration of the system and the relative sizescapacities of the various pieces of equipment as shown by the wide variation in the relative sizes of equipment for the three PV system sizes analyzed (Figure 18)

32

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 66: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

In all scenarios the storage system reduced peaks and valleys in grid demand and energy fed onto the grid (see Figure 15) The leveling effect was the most pronounced for the larger systems However the analysis also showed that additional optimization andor control of the storage systems would be needed to completely eliminate large spikes in energy flow For the 4000-m2 PV system case which is most closely matched to the building demand the storage system and vehicle systems reduced the daily fluctuations in grid demand by almost 80 and completely eliminated reverse flow of electricity to the grid The 4000-m2 system storage scenario was also able to accommodate the seasonal variation in PV output allowing for all of the energy produced by the PV system throughout the year to be used onsite Storage that can smooth seasonal variations as well as daily variations in PV system output may be advantageous for very high levels of PV penetration

This brief analysis shows that community level hydrogen refueling using only renewably generated electricity could be accomplished For the 4000-m2 PV system case the number of fuel cell vehicles that could be refueled roughly matches the total number of vehicles expected for the community size modeled (100 households) The vehicle refueling scenarios were configured so that the storage systems either hydrogen or battery) were cycled approximately daily with a fairly generous ldquocushionrdquo for expected fluctuations in demand over the course of a few days or a week The analysis does not assume that the additional storage accounts for seasonal variations in hydrogenelectricity demand or production Month-to-month variations in production are not large However the high and low production months (March and December respectively) only roughly correspond to expected high and low demand months (JunendashAugust and NovemberndashJanuary respectively) There is also a predictable dip in PV output during the hottest part of the summer when fuel demand is expected to peak Although the analysis did not explicitly address seasonal variations in production or demand it is likely that the additional storage modeled would be sufficient to accommodate them The vehicle refueling scenarios also provide as much smoothing of the PV system outputgrid demand as the energy storage scenarios (see Figure 15) This smoothing of PVgrid interactions could be vital for integration of high levels of distributed PV

The vehicle-refueling analysis shows the potential for community-level hydrogen refueling using only renewably generated electricity (Table 12) With the 4000-m2 PV system the number of fuel cell vehicles served (70 ndash 80) roughly matches the modeled community size (100 households) The levelized hydrogen cost ranges from $34kg ($101kWh) for the 1200-m2

Case 1 system to $11kg ($034kWh) for the 7000-m2 Case 2 system The cost of battery storage of electricity for electric vehicles ranges from $057kWh to $039kWh also decreasing with increasing system size The hydrogen system cost reduction for the larger systems is due as for the load-leveling system to better utilization of the equipment The hydrogen system configuration is also more flexible than the battery system because there are more independent pieces of equipment For small systems this is a disadvantage but for larger systems the increased flexibility reduces costs because an incremental increase in hydrogen storage capacity per kWh (hydrogen tank) is less expensive than an incremental (per kWh) increase in electrochemical storage Even though the hydrogen system is lower cost than the battery system for the largest storage case the electric vehicle is less expensive on a fuel centmile basis because of its higher efficiency in comparison to the fuel cell vehicle

33

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 67: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

5 Future Work This analysis did not show a clear advantage for hydrogen load leveling or vehicle refueling However the analysis does indicate that the economics could be improved especially for larger systems with careful optimization of the system configuration and equipment Several areas of further research that might enhance understanding of the economics of community level hydrogen energy include

bull Explore more realistic scenarios for dealing with seasonal variation in PV output

bull Explore methodologies for optimizing hydrogen system configuration

bull Explore the impact of incentives and net metering for economics

34

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling
Page 68: Hydrogen Enabling Renewables Working Group Summary ReportWorking Group Summary Report October 2013 1 Introduction In late 2010, the Hydrogen & Fuel Cell Technical Advisory Committee

6 References Barbose G Darghouth N Wiser R (November 2012) Tracking the Sun V An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2011 Berkeley CA Lawrence Berkeley National Laboratory

Denholm P Kuss M Margolis RM (2013) ldquoCo-Benefits of Large Scale Plug-In Hybrid Electric Vehicle and Solar PV Deploymentrdquo Journal of Power Sources (23615) pp 350ndash 356 httpdxdoiorg101016jjpowsour201210007

DOE (2013) FuelEconomygov Accessed June 20 2013 httpwwwfueleconomygov

DOE Independent Review (September 2009) Current (2009) State-of-the-Art Hydrogen Production Cost Estimate Using Water Electrolysis NRELBK-6A1-46676 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46676pdf

FCPower Model (2012) Molten Carbonate Fuel Cell version 12 (Excel file) httpwwwhydrogenenergygovfc_power_analysishtml

Field K Deru M Studer D (2010) Using DOE Commercial Reference Buildings for Simulation Studies Preprint SimBuild 2010 Golden CO National Renewable Energy Laboratory

H2A Production Model (2012) Current Forecourt Grid Electrolysis 1500 kg per day version 30 (Excel file) httpwwwhydrogenenergygovh2a_prod_studieshtml

HTAC (September 2011) HTAC Energy Storage Working Group discussions

NREL (2009) Fuel Cell Power Model Case Study Data httpwwwhydrogenenergygovcffc_power_analysis_model_datacfm

Rastler D (December 2010) Electricity Energy Storage Technology Options A White Paper Primer on Applications Costs and Benefits EPRI Technical Update Palo Alto CA Electric Power Research Institute

Short W Packey DJ Holt T (1995) A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies Golden CO National Renewable Energy Laboratory

Srivastava AK Annabathina B Kamalasadan S (April 2010) ldquoThe Challenges and Policy Options for Integrating Plug-in Hybrid Electric Vehicle into the Electric Gridrdquo The Electricity Journal (233) pp 83ndash91 httpdxdoiorg101016jtej201003004

Steward D Saur G Penev M Ramsden T (November 2009) Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage NRELTP-560-46719 Golden CO National Renewable Energy Laboratory httpwwwnrelgovdocsfy10osti46719pdf

35

  • Introduction
  • Energy Storage for Wind Integration
  • Community Energy Storage Systems for Load Leveling Solar Photovoltaics and Vehicle Refueling
  • Other Energy Storage Approaches
  • Overall Conclusions amp Recommendations
  • Recommendations
  • Appendix 1 Energy Storage for High Penetration Wind
  • Appendix 2 Community Energy Analysis of Hydrogen Distributed Energy Systems with Photovoltaics for Load Leveling and Vehicle Refueling